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Regional Management Corp. Announces Second Quarter 2021 Results

Regional Management Corp. Announces Second Quarter 2021 Results

– Net income of $20.2 million and diluted earnings per share of $1.87 –

– 10.9% year-over-year revenue growth and 17.3% core net finance receivables growth –

– Historically low 30+ day contractual delinquencies of 3.6% as of June 30, 2021 –

– Increases authorization under stock repurchase program from $30 million to $50 million –

GREENVILLE, S.C.–(BUSINESS WIRE)–
Regional Management Corp. (NYSE: RM), a diversified consumer finance company, today announced results for the second quarter ended June 30, 2021.

“We are proud of our performance during the second quarter, having generated $20.2 million of net income, strong returns of 7.1% ROA and 28.7% ROE, and double-digit year-over-year receivables and revenue growth,” said Robert W. Beck, President and Chief Executive Officer of Regional Management Corp. “We took advantage of the improving economy and robust loan demand to expand our market share, originating a record $373 million of loans in the quarter and driving our ending net receivables to an all-time high of $1.2 billion. The second quarter loan production and growth contributed to record quarterly revenue and is a validation of our recent strategic investments in our omni-channel model, including our digital initiatives, geographic expansion, and new product and channel development.”

“Along with our exceptional top-line results, we continue to maintain a superior credit profile,” added Mr. Beck. “Our 30+ day delinquency rate improved to a historical low of 3.6%, enabling us to maintain our allowance for credit losses at prior levels despite record sequential quarterly portfolio growth. Robust growth, stable credit, well-managed expenses, and low funding costs combined for another quarter of significant, year-over-year earnings growth. Looking to the second half of 2021, we remain focused on executing on our current strategies to grow our portfolio and to maintain our strong credit profile. With ample unused capacity and available liquidity, we remain well-positioned to continue grabbing market share and delivering attractive returns and long-term value to our shareholders.”

Second Quarter 2021 Highlights

  • Net income for the second quarter of 2021 was $20.2 million and diluted earnings per share was $1.87, compared to net income of $7.5 million and diluted earnings per share of $0.68 in the prior-year period.
  • Net finance receivables as of June 30, 2021 were $1.2 billion, an increase of 15.7%, or $160.8 million, from the prior-year period.

    • Total core small and large loan net finance receivables increased $172.3 million, or 17.3%, compared to the prior-year period.

    • Large loan net finance receivables of $789.7 million increased $171.6 million, or 27.8%, from the prior-year period and represented 66.7% of the total loan portfolio. Small loan net finance receivables were $380.8 million, an increase of 0.2% from the prior-year period.

    • Originated $372.8 million of loans in the second quarter of 2021, an increase of $200.6 million, or 116.5%, from the prior-year period.
  • Total revenue for the second quarter of 2021 was $99.7 million, an increase of $9.8 million, or 10.9%, from the prior-year period.

    • Interest and fee income increased $8.7 million, or 10.9%, primarily due to higher average net finance receivables and improved interest and fee yield.

    • Insurance income, net increased $1.0 million, or 13.2%, driven by an increase in premium revenue and partially offset by an increase in life insurance claims expense.
  • Provision for credit losses for the second quarter of 2021 was $20.5 million, a decrease of $7.0 million, or 25.3%, from the prior-year period. The provision for credit losses for the second quarter of 2021 included a release in the allowance for credit losses of $6.3 million related to the expected economic impact of the COVID-19 pandemic and a net $6.1 million incremental build in reserves related to portfolio growth.

    • Allowance for credit losses was $139.4 million as of June 30, 2021, including a $17.5 million allowance for credit losses associated with COVID-19. The company’s macroeconomic model assumes an unemployment rate under 8% at the end of 2021.
  • Annualized net credit losses as a percentage of average net finance receivables for the second quarter of 2021 were 7.4%, a 320 basis point improvement compared to 10.6% in the prior-year period.
  • As of June 30, 2021, 30+ day contractual delinquencies totaled $42.8 million, or 3.6% of net finance receivables, compared to 4.8% in the prior-year period. As of June 30, 2021, approximately 80% of the company’s total portfolio had been originated since April 2020, the vast majority of which was subject to enhanced credit standards deployed following the outset of the pandemic.
  • General and administrative expenses for the second quarter of 2021 were $46.4 million, an increase of $4.9 million, or 11.7%, from the prior-year period due to investment in digital and technological capabilities of $1.2 million and increased marketing expenses of $3.3 million, normalized to pre-pandemic levels and to support the company’s growth initiatives.
  • The operating expense ratio (annualized general and administrative expenses as a percentage of average net finance receivables) for the second quarter of 2021 was 16.5%, an increase of 70 basis points compared to the prior-year period.
  • As of June 30, 2021, the company had total unused capacity on its revolving credit facilities of $647 million, subject to the borrowing base, and available liquidity of $202 million, including unrestricted cash on hand and immediate availability to draw down cash from its revolving credit facilities.
  • In the second quarter of 2021, the company repurchased 344,429 shares of its common stock at a weighted-average price of $46.45 per share under the company’s $30 million stock repurchase program announced in May 2021. The company also repurchased an additional 68,437 shares at a weighted-average price of $50.49 per share in July 2021, bringing total repurchases under the stock repurchase program announced in May 2021 to 412,866 shares at a weighted-average price of $47.12 per share through July 2021.
  • In July 2021, the company closed its sixth asset-backed securitization, a $200 million note issuance with a weighted-average coupon of 2.30%.

Third Quarter 2021 Dividend and Increase in Stock Repurchase Program Authorization

The company’s Board of Directors has declared a dividend of $0.25 per common share for the third quarter of 2021. The dividend will be paid on September 15, 2021 to shareholders of record as of the close of business on August 25, 2021.

The declaration and payment of any future dividend is subject to the discretion of the Board of Directors and will depend on a variety of factors, including the company’s financial condition and results of operations.

In addition, the company’s Board of Directors has approved a $20 million increase in the amount authorized under the stock repurchase program announced in May 2021, from $30 million to $50 million.

Share repurchases under the stock repurchase program may be made in the open market at prevailing market prices, through privately negotiated transactions, or through other structures in accordance with applicable federal securities laws, at times and in amounts as management deems appropriate. The timing and the amount of any common stock repurchases will be determined by the company’s management based on its evaluation of market conditions, the company’s liquidity needs, legal and contractual requirements and restrictions (including covenants in the company’s credit agreements), share price, and other factors. Repurchases of common stock may be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the company might otherwise be precluded from doing so under insider trading laws. The repurchase program does not obligate the company to repurchase any particular number of shares and may be suspended, modified, or discontinued at any time without prior notice.

Liquidity and Capital Resources

As of June 30, 2021, the company had net finance receivables of $1.2 billion and debt of $853.1 million ($851.3 million of outstanding debt and $1.7 million of interest payable). The debt consisted of:

  • $144.5 million on its $640.0 million senior revolving credit facility availability,
  • $149.2 million on its three revolving warehouse credit facilities availability, totaling $300.0 million, and
  • $559.3 million through its asset-backed securitizations.

The company’s unused capacity on its revolving credit facilities (subject to the borrowing base) was $647 million, or 68.9%, as of June 30, 2021.

The company had a funded debt-to-equity ratio of 3.1 to 1.0 and a stockholders’ equity ratio of 23.4%, each as of June 30, 2021. On a non-GAAP basis, the company had a funded debt-to-tangible equity ratio of 3.2 to 1.0, as of June 30, 2021. Please refer to the reconciliations of non-GAAP measures to comparable GAAP measures included at the end of this press release.

Full Year 2021 Outlook

In light of the unique circumstances presented by the COVID-19 pandemic and credit loss provisioning under the new CECL accounting standard, the company is initiating a full year 2021 outlook for net income. For the full year 2021, the company expects net income to be between $75 million and $80 million. The outlook assumes that:

  • Current economic conditions remain steady,
  • The full year 2021 net credit loss rate will be approximately 7.0%,
  • The company will build its allowance for credit losses in the second half of the year due to net finance receivables growth,
  • The allowance for credit losses rate will normalize to pre-pandemic levels of approximately 10.8% by the end of the year, and
  • General and administrative expenses will increase in the second half of the year as the company continues to invest in its growth initiatives, including increased marketing expenses associated with digital lending efforts.

Branch Network

As of June 30, 2021, the company’s branch network consisted of 368 locations, and in April 2021, the company opened its first branch in Illinois. The company expects to open 15 to 20 new branches during the full year 2021, subject to the economic environment.

Conference Call Information

Regional Management Corp. will host a conference call and webcast today at 5:00 PM ET to discuss these results.

The dial-in number for the conference call is (855) 327-6837 (toll-free) or (631) 891-4304 (direct). Please dial the number 10 minutes prior to the scheduled start time.

*** A supplemental slide presentation will be made available on Regional’s website prior to the earnings call at www.RegionalManagement.com. ***

In addition, a live webcast of the conference call will be available on Regional’s website at www.RegionalManagement.com.

A webcast replay of the call will be available at www.RegionalManagement.com for one year following the call.

About Regional Management Corp.

Regional Management Corp. (NYSE: RM) is a diversified consumer finance company that provides attractive, easy-to-understand installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. Regional Management operates under the name “Regional Finance” in 368 branch locations across 12 states in the Southeastern, Southwestern, Mid-Atlantic, and Midwestern United States, as of June 30, 2021. Most of its loan products are secured, and each is structured on a fixed rate, fixed term basis with fully amortizing equal monthly installment payments, repayable at any time without penalty. Regional Management sources loans through its multiple channel platform, which includes branches, centrally-managed direct mail campaigns, digital partners, retailers, and its consumer website. For more information, please visit www.RegionalManagement.com.

Forward-Looking Statements

This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but instead represent Regional Management Corp.’s expectations or beliefs concerning future events. Forward-looking statements include, without limitation, statements concerning financial outlooks or future plans, objectives, goals, projections, strategies, events, or performance, and underlying assumptions and other statements related thereto. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “outlook,” and similar expressions may be used to identify these forward-looking statements. Such forward-looking statements speak only as of the date on which they were made and are about matters that are inherently subject to risks and uncertainties, many of which are outside of the control of Regional Management. As a result, actual performance and results may differ materially from those contemplated by these forward-looking statements. Therefore, investors should not place undue reliance on forward-looking statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in forward-looking statements include, but are not limited to, the following: risks related to Regional Management’s business, including the COVID-19 pandemic and its impact on Regional Management’s operations and financial condition; managing growth effectively, implementing Regional Management’s growth strategy, and opening new branches as planned; Regional Management’s convenience check strategy; Regional Management’s policies and procedures for underwriting, processing, and servicing loans; Regional Management’s ability to collect on its loan portfolio; Regional Management’s insurance operations; exposure to credit risk and repayment risk, which risks may increase in light of adverse or recessionary economic conditions; the implementation of new underwriting models and processes, including as to the effectiveness of new custom scorecards; changes in the competitive environment in which Regional Management operates or a decrease in the demand for its products; the geographic concentration of Regional Management’s loan portfolio; the failure of third-party service providers, including those providing information technology products; changes in economic conditions in the markets Regional Management serves, including levels of unemployment and bankruptcies; the ability to achieve successful acquisitions and strategic alliances; the ability to make technological improvements as quickly as competitors; security breaches, cyber-attacks, failures in information systems, or fraudulent activity; the ability to originate loans; reliance on information technology resources and providers, including the risk of prolonged system outages; changes in current revenue and expense trends, including trends affecting delinquencies and credit losses; changes in operating and administrative expenses; the departure, transition, or replacement of key personnel; the ability to timely and effectively implement, transition to, and maintain the necessary information technology systems, infrastructure, processes, and controls to support Regional Management’s operations and initiatives; changes in interest rates; existing sources of liquidity may become insufficient or access to these sources may become unexpectedly restricted; exposure to financial risk due to asset-backed securitization transactions; risks related to regulation and legal proceedings, including changes in laws or regulations or in the interpretation or enforcement of laws or regulations; changes in accounting standards, rules, and interpretations and the failure of related assumptions and estimates, including those associated with the implementation of CECL accounting; the impact of changes in tax laws, guidance, and interpretations, including the timing and amount of revenues that may be recognized; risks related to the ownership of Regional Management’s common stock, including volatility in the market price of shares of Regional Management’s common stock; the timing and amount of future cash dividend payments; and anti-takeover provisions in Regional Management’s charter documents and applicable state law. The COVID-19 pandemic may also magnify many of these risks and uncertainties.

The foregoing factors and others are discussed in greater detail in Regional Management’s filings with the Securities and Exchange Commission. Regional Management will not update or revise forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events or the non-occurrence of anticipated events, whether as a result of new information, future developments, or otherwise, except as required by law. Regional Management is not responsible for changes made to this document by wire services or Internet services.

 

Regional Management Corp. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

(dollars in thousands, except per share amounts)
 

 

 

 

 

 

 

 

 

 

 

Better (Worse)

 

 

 

 

 

 

 

 

 

 

Better (Worse)

 

 

 

2Q 21

 

 

2Q 20

 

 

$

 

 

%

 

 

YTD 21

 

 

YTD 20

 

 

$

 

 

%

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fee income

 

$

88,793

 

 

$

80,067

 

 

$

8,726

 

 

 

10.9

%

 

$

176,072

 

 

$

167,064

 

 

$

9,008

 

 

 

5.4

%

Insurance income, net

 

 

8,656

 

 

 

7,650

 

 

 

1,006

 

 

 

13.2

%

 

 

16,641

 

 

 

13,599

 

 

 

3,042

 

 

 

22.4

%

Other income

 

 

2,227

 

 

 

2,133

 

 

 

94

 

 

 

4.4

%

 

 

4,694

 

 

 

5,261

 

 

 

(567

)

 

 

(10.8

)%

Total revenue

 

 

99,676

 

 

 

89,850

 

 

 

9,826

 

 

 

10.9

%

 

 

197,407

 

 

 

185,924

 

 

 

11,483

 

 

 

6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

20,549

 

 

 

27,499

 

 

 

6,950

 

 

 

25.3

%

 

 

31,911

 

 

 

77,021

 

 

 

45,110

 

 

 

58.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel

 

 

28,370

 

 

 

26,863

 

 

 

(1,507

)

 

 

(5.6

)%

 

 

57,221

 

 

 

56,374

 

 

 

(847

)

 

 

(1.5

)%

Occupancy

 

 

5,568

 

 

 

5,608

 

 

 

40

 

 

 

0.7

%

 

 

11,588

 

 

 

10,835

 

 

 

(753

)

 

 

(6.9

)%

Marketing

 

 

4,776

 

 

 

1,438

 

 

 

(3,338

)

 

 

(232.1

)%

 

 

7,486

 

 

 

3,124

 

 

 

(4,362

)

 

 

(139.6

)%

Other

 

 

7,675

 

 

 

7,616

 

 

 

(59

)

 

 

(0.8

)%

 

 

15,937

 

 

 

17,435

 

 

 

1,498

 

 

 

8.6

%

Total general and administrative

 

 

46,389

 

 

 

41,525

 

 

 

(4,864

)

 

 

(11.7

)%

 

 

92,232

 

 

 

87,768

 

 

 

(4,464

)

 

 

(5.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

7,801

 

 

 

9,137

 

 

 

1,336

 

 

 

14.6

%

 

 

14,936

 

 

 

19,296

 

 

 

4,360

 

 

 

22.6

%

Income before income taxes

 

 

24,937

 

 

 

11,689

 

 

 

13,248

 

 

 

113.3

%

 

 

58,328

 

 

 

1,839

 

 

 

56,489

 

 

 

3,071.7

%

Income taxes

 

 

4,771

 

 

 

4,219

 

 

 

(552

)

 

 

(13.1

)%

 

 

12,640

 

 

 

694

 

 

 

(11,946

)

 

 

(1,721.3

)%

Net income

 

$

20,166

 

 

$

7,470

 

 

$

12,696

 

 

 

170.0

%

 

$

45,688

 

 

$

1,145

 

 

$

44,543

 

 

 

3,890.2

%

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.98

 

 

$

0.68

 

 

$

1.30

 

 

 

191.2

%

 

$

4.41

 

 

$

0.10

 

 

$

4.31

 

 

 

4,310.0

%

Diluted

 

$

1.87

 

 

$

0.68

 

 

$

1.19

 

 

 

175.0

%

 

$

4.18

 

 

$

0.10

 

 

$

4.08

 

 

 

4,080.0

%

Weighted-average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

10,200

 

 

 

10,962

 

 

 

762

 

 

 

7.0

%

 

 

10,371

 

 

 

10,929

 

 

 

558

 

 

 

5.1

%

Diluted

 

 

10,797

 

 

 

11,013

 

 

 

216

 

 

 

2.0

%

 

 

10,931

 

 

 

11,130

 

 

 

199

 

 

 

1.8

%

Return on average assets (annualized)

 

 

7.1

%

 

 

2.9

%

 

 

 

 

 

 

 

 

 

 

8.2

%

 

 

0.2

%

 

 

 

 

 

 

 

 

Return on average equity (annualized)

 

 

28.7

%

 

 

11.7

%

 

 

 

 

 

 

 

 

 

 

32.7

%

 

 

0.9

%

 

 

 

 

 

 

 

 

 

Regional Management Corp. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

(dollars in thousands, except par value amounts)
 

 

 

 

 

 

 

 

 

 

 

Increase (Decrease)

 

 

 

2Q 21

 

 

2Q 20

 

 

$

 

 

%

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

6,086

 

 

$

8,973

 

 

$

(2,887

)

 

 

(32.2

)%

Net finance receivables

 

 

1,183,387

 

 

 

1,022,635

 

 

 

160,752

 

 

 

15.7

%

Unearned insurance premiums

 

 

(39,469

)

 

 

(27,016

)

 

 

(12,453

)

 

 

(46.1

)%

Allowance for credit losses

 

 

(139,400

)

 

 

(142,000

)

 

 

2,600

 

 

 

1.8

%

Net finance receivables, less unearned insurance premiums and allowance for credit losses

 

 

1,004,518

 

 

 

853,619

 

 

 

150,899

 

 

 

17.7

%

Restricted cash

 

 

99,920

 

 

 

54,423

 

 

 

45,497

 

 

 

83.6

%

Lease assets

 

 

28,223

 

 

 

27,177

 

 

 

1,046

 

 

 

3.8

%

Deferred tax assets, net

 

 

14,109

 

 

 

20,682

 

 

 

(6,573

)

 

 

(31.8

)%

Property and equipment

 

 

12,658

 

 

 

15,504

 

 

 

(2,846

)

 

 

(18.4

)%

Intangible assets

 

 

9,081

 

 

 

8,824

 

 

 

257

 

 

 

2.9

%

Other assets

 

 

16,710

 

 

 

11,023

 

 

 

5,687

 

 

 

51.6

%

Total assets

 

$

1,191,305

 

 

$

1,000,225

 

 

$

191,080

 

 

 

19.1

%

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

853,067

 

 

$

683,865

 

 

$

169,202

 

 

 

24.7

%

Unamortized debt issuance costs

 

 

(9,356

)

 

 

(7,584

)

 

 

(1,772

)

 

 

(23.4

)%

Net debt

 

 

843,711

 

 

 

676,281

 

 

 

167,430

 

 

 

24.8

%

Accounts payable and accrued expenses

 

 

38,316

 

 

 

34,843

 

 

 

3,473

 

 

 

10.0

%

Lease liabilities

 

 

30,295

 

 

 

29,220

 

 

 

1,075

 

 

 

3.7

%

Total liabilities

 

 

912,322

 

 

 

740,344

 

 

 

171,978

 

 

 

23.2

%

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock ($0.10 par value, 100,000 shares authorized, none issued or outstanding)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Common stock ($0.10 par value, 1,000,000 shares authorized, 14,141 shares issued and 10,360 shares outstanding at June 30, 2021 and 13,727 shares issued and 11,243 shares outstanding at June 30, 2020)

 

 

1,414

 

 

 

1,373

 

 

 

41

 

 

 

3.0

%

Additional paid-in-capital

 

 

105,509

 

 

 

104,530

 

 

 

979

 

 

 

0.9

%

Retained earnings

 

 

268,172

 

 

 

204,052

 

 

 

64,120

 

 

 

31.4

%

Treasury stock (3,780 shares at June 30, 2021 and 2,484 shares at June 30, 2020)

 

 

(96,112

)

 

 

(50,074

)

 

 

(46,038

)

 

 

(91.9

)%

Total stockholders’ equity

 

 

278,983

 

 

 

259,881

 

 

 

19,102

 

 

 

7.4

%

Total liabilities and stockholders’ equity

 

$

1,191,305

 

 

$

1,000,225

 

 

$

191,080

 

 

 

19.1

%

 

Regional Management Corp. and Subsidiaries

Selected Financial Data

(Unaudited)

(dollars in thousands, except per share amounts)
 

 

 

Net Finance Receivables by Product

 

 

 

2Q 21

 

 

1Q 21

 

 

QoQ $

Inc (Dec)

 

 

QoQ %

Inc (Dec)

 

 

2Q 20

 

 

YoY $

Inc (Dec)

 

 

YoY %

Inc (Dec)

 

Small loans

 

$

380,780

 

 

$

371,188

 

 

$

9,592

 

 

 

2.6

%

 

$

380,083

 

 

$

697

 

 

 

0.2

%

Large loans

 

 

789,743

 

 

 

719,441

 

 

 

70,302

 

 

 

9.8

%

 

 

618,134

 

 

 

171,609

 

 

 

27.8

%

Total core loans

 

 

1,170,523

 

 

 

1,090,629

 

 

 

79,894

 

 

 

7.3

%

 

 

998,217

 

 

 

172,306

 

 

 

17.3

%

Automobile loans

 

 

2,303

 

 

 

3,033

 

 

 

(730

)

 

 

(24.1

)%

 

 

6,059

 

 

 

(3,756

)

 

 

(62.0

)%

Retail loans

 

 

10,561

 

 

 

11,941

 

 

 

(1,380

)

 

 

(11.6

)%

 

 

18,359

 

 

 

(7,798

)

 

 

(42.5

)%

Total net finance receivables

 

$

1,183,387

 

 

$

1,105,603

 

 

$

77,784

 

 

 

7.0

%

 

$

1,022,635

 

 

$

160,752

 

 

 

15.7

%

Number of branches at period end

 

 

368

 

 

 

365

 

 

 

3

 

 

 

0.8

%

 

 

368

 

 

 

—

 

 

 

—

 

Average net finance receivables per branch

 

$

3,216

 

 

$

3,029

 

 

$

187

 

 

 

6.2

%

 

$

2,779

 

 

$

437

 

 

 

15.7

%

 

 

Averages and Yields

 

 

 

2Q 21

 

 

1Q 21

 

 

2Q 20

 

 

 

Average Net

Finance

Receivables

 

 

Average Yield

(Annualized)

 

 

Average Net

Finance

Receivables

 

 

Average Yield

(Annualized)

 

 

Average Net

Finance

Receivables

 

 

Average Yield

(Annualized)

 

Small loans

 

$

365,535

 

 

 

38.3

%

 

$

389,138

 

 

 

37.5

%

 

$

404,019

 

 

 

36.2

%

Large loans

 

 

744,935

 

 

 

28.6

%

 

 

717,572

 

 

 

27.9

%

 

 

618,860

 

 

 

27.3

%

Automobile loans

 

 

2,647

 

 

 

12.7

%

 

 

3,480

 

 

 

13.0

%

 

 

6,820

 

 

 

14.8

%

Retail loans

 

 

11,181

 

 

 

18.2

%

 

 

13,170

 

 

 

17.8

%

 

 

20,114

 

 

 

18.0

%

Total interest and fee yield

 

$

1,124,298

 

 

 

31.6

%

 

$

1,123,360

 

 

 

31.1

%

 

$

1,049,813

 

 

 

30.5

%

Total revenue yield

 

$

1,124,298

 

 

 

35.5

%

 

$

1,123,360

 

 

 

34.8

%

 

$

1,049,813

 

 

 

34.2

%

 

 

Components of Increase in Interest and Fee Income

 

 

 

2Q 21 Compared to 2Q 20

 

 

 

Increase (Decrease)

 

 

 

Volume

 

 

Rate

 

 

Volume & Rate

 

 

Total

 

Small loans

 

$

(3,487

)

 

$

2,099

 

 

$

(200

)

 

$

(1,588

)

Large loans

 

 

8,618

 

 

 

1,879

 

 

 

383

 

 

 

10,880

 

Automobile loans

 

 

(155

)

 

 

(37

)

 

 

23

 

 

 

(169

)

Retail loans

 

 

(403

)

 

 

10

 

 

 

(4

)

 

 

(397

)

Product mix

 

 

1,108

 

 

 

(1,108

)

 

 

—

 

 

 

—

 

Total increase in interest and fee income

 

$

5,681

 

 

$

2,843

 

 

$

202

 

 

$

8,726

 

 

 

Net Loans Originated (1) (2)

 

 

 

2Q 21

 

 

1Q 21

 

 

QoQ $

Inc (Dec)

 

 

QoQ %

Inc (Dec)

 

 

2Q 20

 

 

YoY $

Inc (Dec)

 

 

YoY %

Inc (Dec)

 

Small loans

 

$

147,456

 

 

$

98,817

 

 

$

48,639

 

 

 

49.2

%

 

$

79,265

 

 

$

68,191

 

 

 

86.0

%

Large loans

 

 

223,648

 

 

 

130,821

 

 

 

92,827

 

 

 

71.0

%

 

 

90,980

 

 

 

132,668

 

 

 

145.8

%

Retail loans

 

 

1,668

 

 

 

1,780

 

 

 

(112

)

 

 

(6.3

)%

 

 

1,907

 

 

 

(239

)

 

 

(12.5

)%

Total net loans originated

 

$

372,772

 

 

$

231,418

 

 

$

141,354

 

 

 

61.1

%

 

$

172,152

 

 

$

200,620

 

 

 

116.5

%

(1)

 

Represents the balance of loan originations and refinancings net of unearned finance charges.

(2)

 

The company ceased originating automobile purchase loans in November 2017.

 

 

Other Key Metrics

 

 

 

2Q 21

 

 

1Q 21

 

 

2Q 20

 

Net credit losses

 

$

20,749

 

 

$

21,762

 

 

$

27,899

 

Percentage of average net finance receivables (annualized)

 

 

7.4

%

 

 

7.7

%

 

 

10.6

%

Provision for loan losses (1)

 

$

20,549

 

 

$

11,362

 

 

$

27,499

 

Percentage of average net finance receivables (annualized)

 

 

7.3

%

 

 

4.0

%

 

 

10.5

%

Percentage of total revenue

 

 

20.6

%

 

 

11.6

%

 

 

30.6

%

General and administrative expenses

 

$

46,389

 

 

$

45,843

 

 

$

41,525

 

Percentage of average net finance receivables (annualized)

 

 

16.5

%

 

 

16.3

%

 

 

15.8

%

Percentage of total revenue

 

 

46.5

%

 

 

46.9

%

 

 

46.2

%

Same store results (2):

 

 

 

 

 

 

 

 

 

 

 

 

Net finance receivables at period-end

 

$

1,175,516

 

 

$

1,100,840

 

 

$

1,016,776

 

Net finance receivable growth rate

 

 

15.4

%

 

 

0.2

%

 

 

2.2

%

Number of branches in calculation

 

 

356

 

 

 

356

 

 

 

349

 

(1)

 

Includes COVID-19 pandemic impacts to provision for credit losses of $(6,300), $(6,600), and $9,500 for 2Q 21, 1Q 21, and 2Q 20, respectively.

(2)

 

Same store sales reflect the change in year-over-year sales for the comparable branch base. The comparable branch base includes those branches open for at least one year.

 

 

Contractual Delinquency by Aging

 

 

 

2Q 21

 

 

1Q 21

 

 

2Q 20

 

Allowance for credit losses (1)

 

$

139,400

 

 

 

11.8

%

 

$

139,600

 

 

 

12.6

%

 

$

142,000

 

 

 

13.9

%

 

Current

 

 

1,066,124

 

 

 

90.1

%

 

 

1,010,859

 

 

 

91.4

%

 

 

896,928

 

 

 

87.8

%

1 to 29 days past due

 

 

74,470

 

 

 

6.3

%

 

 

47,024

 

 

 

4.3

%

 

 

76,172

 

 

 

7.4

%

Delinquent accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59 days

 

 

14,488

 

 

 

1.2

%

 

 

11,252

 

 

 

1.0

%

 

 

15,277

 

 

 

1.4

%

60 to 89 days

 

 

9,614

 

 

 

0.8

%

 

 

9,808

 

 

 

0.9

%

 

 

9,764

 

 

 

1.0

%

90 to 119 days

 

 

6,116

 

 

 

0.5

%

 

 

8,682

 

 

 

0.8

%

 

 

7,014

 

 

 

0.7

%

120 to 149 days

 

 

5,961

 

 

 

0.5

%

 

 

8,717

 

 

 

0.8

%

 

 

8,081

 

 

 

0.8

%

150 to 179 days

 

 

6,614

 

 

 

0.6

%

 

 

9,261

 

 

 

0.8

%

 

 

9,399

 

 

 

0.9

%

Total contractual delinquency

 

$

42,793

 

 

 

3.6

%

 

$

47,720

 

 

 

4.3

%

 

$

49,535

 

 

 

4.8

%

Total net finance receivables

 

$

1,183,387

 

 

 

100.0

%

 

$

1,105,603

 

 

 

100.0

%

 

$

1,022,635

 

 

 

100.0

%

1 day and over past due

 

$

117,263

 

 

 

9.9

%

 

$

94,744

 

 

 

8.6

%

 

$

125,707

 

 

 

12.2

%

 

 

Contractual Delinquency by Product

 

 

 

2Q 21

 

 

1Q 21

 

 

2Q 20

 

Small loans

 

$

18,876

 

 

 

5.0

%

 

$

22,582

 

 

 

6.1

%

 

$

24,465

 

 

 

6.4

%

Large loans

 

 

23,068

 

 

 

2.9

%

 

 

24,177

 

 

 

3.4

%

 

 

23,660

 

 

 

3.8

%

Automobile loans

 

 

183

 

 

 

7.9

%

 

 

227

 

 

 

7.5

%

 

 

291

 

 

 

4.8

%

Retail loans

 

 

666

 

 

 

6.3

%

 

 

734

 

 

 

6.1

%

 

 

1,119

 

 

 

6.1

%

Total contractual delinquency

 

$

42,793

 

 

 

3.6

%

 

$

47,720

 

 

 

4.3

%

 

$

49,535

 

 

 

4.8

%

(1)

 

Includes incremental COVID-19 allowance for credit losses of $17,500, $23,800, and $33,400 in 2Q 21, 1Q 21, and 2Q 20, respectively.

 

 

Income Statement Quarterly Trend

 

 

 

2Q 20

 

 

3Q 20

 

 

4Q 20

 

 

1Q 21

 

 

2Q 21

 

 

QoQ $

B(W)

 

 

YoY $

B(W)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fee income

 

$

80,067

 

 

$

81,306

 

 

$

86,845

 

 

$

87,279

 

 

$

88,793

 

 

$

1,514

 

 

$

8,726

 

Insurance income, net

 

 

7,650

 

 

 

6,861

 

 

 

7,889

 

 

 

7,985

 

 

 

8,656

 

 

 

671

 

 

 

1,006

 

Other income

 

 

2,133

 

 

 

2,371

 

 

 

2,710

 

 

 

2,467

 

 

 

2,227

 

 

 

(240

)

 

 

94

 

Total revenue

 

 

89,850

 

 

 

90,538

 

 

 

97,444

 

 

 

97,731

 

 

 

99,676

 

 

 

1,945

 

 

 

9,826

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

27,499

 

 

 

22,089

 

 

 

24,700

 

 

 

11,362

 

 

 

20,549

 

 

 

(9,187

)

 

 

6,950

 

 

Personnel

 

 

26,863

 

 

 

26,207

 

 

 

26,979

 

 

 

28,851

 

 

 

28,370

 

 

 

481

 

 

 

(1,507

)

Occupancy

 

 

5,608

 

 

 

5,894

 

 

 

5,900

 

 

 

6,020

 

 

 

5,568

 

 

 

452

 

 

 

40

 

Marketing

 

 

1,438

 

 

 

3,249

 

 

 

3,984

 

 

 

2,710

 

 

 

4,776

 

 

 

(2,066

)

 

 

(3,338

)

Other

 

 

7,616

 

 

 

8,404

 

 

 

7,931

 

 

 

8,262

 

 

 

7,675

 

 

 

587

 

 

 

(59

)

Total general and administrative

 

 

41,525

 

 

 

43,754

 

 

 

44,794

 

 

 

45,843

 

 

 

46,389

 

 

 

(546

)

 

 

(4,864

)

 

Interest expense

 

 

9,137

 

 

 

9,300

 

 

 

9,256

 

 

 

7,135

 

 

 

7,801

 

 

 

(666

)

 

 

1,336

 

Income before income taxes

 

 

11,689

 

 

 

15,395

 

 

 

18,694

 

 

 

33,391

 

 

 

24,937

 

 

 

(8,454

)

 

 

13,248

 

Income taxes

 

 

4,219

 

 

 

4,157

 

 

 

4,347

 

 

 

7,869

 

 

 

4,771

 

 

 

3,098

 

 

 

(552

)

Net income

 

$

7,470

 

 

$

11,238

 

 

$

14,347

 

 

$

25,522

 

 

$

20,166

 

 

$

(5,356

)

 

$

12,696

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.68

 

 

$

1.02

 

 

$

1.32

 

 

$

2.42

 

 

$

1.98

 

 

$

(0.44

)

 

$

1.30

 

Diluted

 

$

0.68

 

 

$

1.01

 

 

$

1.28

 

 

$

2.31

 

 

$

1.87

 

 

$

(0.44

)

 

$

1.19

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

10,962

 

 

 

10,977

 

 

 

10,882

 

 

 

10,543

 

 

 

10,200

 

 

 

343

 

 

 

762

 

Diluted

 

 

11,013

 

 

 

11,092

 

 

 

11,228

 

 

 

11,066

 

 

 

10,797

 

 

 

269

 

 

 

216

 

 

Net interest margin

 

$

80,713

 

 

$

81,238

 

 

$

88,188

 

 

$

90,596

 

 

$

91,875

 

 

$

1,279

 

 

$

11,162

 

Net credit margin

 

$

53,214

 

 

$

59,149

 

 

$

63,488

 

 

$

79,234

 

 

$

71,326

 

 

$

(7,908

)

 

$

18,112

 

 

 

Balance Sheet Quarterly Trend

 

 

 

2Q 20

 

 

3Q 20

 

 

4Q 20

 

 

1Q 21

 

 

2Q 21

 

 

QoQ $

Inc (Dec)

 

 

YoY $

Inc (Dec)

 

Total assets

 

$

1,000,225

 

 

$

1,037,559

 

 

$

1,103,856

 

 

$

1,098,295

 

 

$

1,191,305

 

 

$

93,010

 

 

$

191,080

 

Net finance receivables

 

$

1,022,635

 

 

$

1,059,554

 

 

$

1,136,259

 

 

$

1,105,603

 

 

$

1,183,387

 

 

$

77,784

 

 

$

160,752

 

Allowance for credit losses

 

$

142,000

 

 

$

144,000

 

 

$

150,000

 

 

$

139,600

 

 

$

139,400

 

 

$

(200

)

 

$

(2,600

)

Debt

 

$

683,865

 

 

$

700,139

 

 

$

768,909

 

 

$

752,200

 

 

$

853,067

 

 

$

100,867

 

 

$

169,202

 

 

 

Other Key Metrics Quarterly Trend

 

 

 

2Q 20

 

 

3Q 20

 

 

4Q 20

 

 

1Q 21

 

 

2Q 21

 

 

QoQ

Inc (Dec)

 

 

YoY

Inc (Dec)

 

Interest and fee yield (annualized)

 

 

30.5

%

 

 

31.5

%

 

 

31.9

%

 

 

31.1

%

 

 

31.6

%

 

 

0.5

%

 

 

1.1

%

Efficiency ratio (1)

 

 

46.2

%

 

 

48.3

%

 

 

46.0

%

 

 

46.9

%

 

 

46.5

%

 

 

(0.4

)%

 

 

0.3

%

Operating expense ratio (2)

 

 

15.8

%

 

 

17.0

%

 

 

16.4

%

 

 

16.3

%

 

 

16.5

%

 

 

0.2

%

 

 

0.7

%

30+ contractual delinquency

 

 

4.8

%

 

 

4.7

%

 

 

5.3

%

 

 

4.3

%

 

 

3.6

%

 

 

(0.7

)%

 

 

(1.2

)%

Net credit loss ratio (3)

 

 

10.6

%

 

 

7.8

%

 

 

6.9

%

 

 

7.7

%

 

 

7.4

%

 

 

(0.3

)%

 

 

(3.2

)%

Book value per share

 

$

23.11

 

 

$

24.03

 

 

$

24.89

 

 

$

26.28

 

 

$

26.93

 

 

$

0.65

 

 

$

3.82

 

(1)

 

General and administrative expenses as a percentage of total revenue.

(2)

 

Annualized general and administrative expenses as a percentage of average net finance receivables.

(3)

 

Annualized net credit losses as a percentage of average net finance receivables.

 

 

Averages and Yields

 

 

 

YTD 21

 

 

YTD 20

 

 

 

Average Net Finance Receivables

 

 

Average Yield

(Annualized)

 

 

Average Net Finance

Receivables

 

 

Average Yield

(Annualized)

 

Small loans

 

$

377,272

 

 

 

37.9

%

 

$

431,076

 

 

 

36.5

%

Large loans

 

 

731,329

 

 

 

28.3

%

 

 

626,185

 

 

 

27.4

%

Automobile loans

 

 

3,061

 

 

 

12.9

%

 

 

7,719

 

 

 

14.1

%

Retail loans

 

 

12,170

 

 

 

18.0

%

 

 

21,585

 

 

 

17.9

%

Total interest and fee yield

 

$

1,123,832

 

 

 

31.3

%

 

$

1,086,565

 

 

 

30.8

%

Total revenue yield

 

$

1,123,832

 

 

 

35.1

%

 

$

1,086,565

 

 

 

34.2

%

 

 

Components of Increase in Interest and Fee Income

 

 

 

YTD 21 Compared to YTD 20

 

 

 

Increase (Decrease)

 

 

 

Volume

 

 

Rate

 

 

Volume & Rate

 

 

Total

 

Small loans

 

$

(9,818

)

 

$

2,994

 

 

$

(374

)

 

$

(7,198

)

Large loans

 

 

14,428

 

 

 

2,539

 

 

 

426

 

 

 

17,393

 

Automobile loans

 

 

(328

)

 

 

(47

)

 

 

28

 

 

 

(347

)

Retail loans

 

 

(844

)

 

 

8

 

 

 

(4

)

 

 

(840

)

Product mix

 

 

2,292

 

 

 

(2,325

)

 

 

33

 

 

 

—

 

Total increase in interest and fee income

 

$

5,730

 

 

$

3,169

 

 

$

109

 

 

$

9,008

 

 

 

Net Loans Originated (1) (2)

 

 

 

YTD 21

 

 

YTD 20

 

 

YTD $

Inc (Dec)

 

 

YTD %

Inc (Dec)

 

Small loans

 

$

246,273

 

 

$

199,289

 

 

$

46,984

 

 

 

23.6

%

Large loans

 

 

354,469

 

 

 

196,628

 

 

 

157,841

 

 

 

80.3

%

Retail loans

 

 

3,448

 

 

 

5,480

 

 

 

(2,032

)

 

 

(37.1

)%

Total net loans originated

 

$

604,190

 

 

$

401,397

 

 

$

202,793

 

 

 

50.5

%

(1)

 

Represents the balance of loan originations and refinancings net of unearned finance charges.

(2)

 

The company ceased originating automobile loans in November 2017.

 

 

Other Key Metrics

 

 

 

YTD 21

 

 

YTD 20

 

Net credit losses

 

$

42,511

 

 

$

57,321

 

Percentage of average net finance receivables (annualized)

 

 

7.6

%

 

 

10.6

%

Provision for loan losses (1)

 

$

31,911

 

 

$

77,021

 

Percentage of average net finance receivables (annualized)

 

 

5.7

%

 

 

14.2

%

Percentage of total revenue

 

 

16.2

%

 

 

41.4

%

General and administrative expenses (2) (3)

 

$

92,232

 

 

$

87,768

 

Percentage of average net finance receivables (annualized)

 

 

16.4

%

 

 

16.2

%

Percentage of total revenue

 

 

46.7

%

 

 

47.2

%

(1)

 

Includes COVID-19 pandemic impacts to provision for credit losses of $(12,900) and $33,400 for YTD 21 and YTD 20, respectively.

(2)

 

Includes non-operating executive transition costs of $3,066 for YTD 20.

(3)

 

Includes non-operating loan management system outage costs of $720 for YTD 20.

Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. The company’s management utilizes non-GAAP measures as additional metrics to aid in, and enhance, its understanding of the company’s financial results. Tangible equity and funded debt-to-tangible equity ratio are non-GAAP measures that adjust GAAP measures to exclude intangible assets. Management uses these equity measures to evaluate and manage the company’s capital and leverage position. The company also believes that these equity measures are commonly used in the financial services industry and provide useful information to users of the company’s financial statements in the evaluation of its capital and leverage position.

This non-GAAP financial information should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. In addition, the company’s non-GAAP measures may not be comparable to similarly titled non-GAAP measures of other companies. The following tables provide a reconciliation of GAAP measures to non-GAAP measures.

 

 

2Q 21

 

Debt

 

$

853,067

 

 

Total stockholders’ equity

 

 

278,983

 

Less: Intangible assets

 

 

9,081

 

Tangible equity (non-GAAP)

 

$

269,902

 

 

Funded debt-to-equity ratio

 

 

3.1

x

Funded debt-to-tangible equity ratio (non-GAAP)

 

 

3.2

x

 

Investor Relations

Garrett Edson, (203) 682-8331

[email protected]

KEYWORDS: United States North America South Carolina

INDUSTRY KEYWORDS: Professional Services Finance

MEDIA:

Posted on

Uniti Group Inc. Declares $0.15 Per Share Quarterly Dividend

LITTLE ROCK, Ark., Aug. 03, 2021 (GLOBE NEWSWIRE) — Uniti Group Inc. (“Uniti”) (Nasdaq: UNIT) announced today that its Board of Directors declared a quarterly cash dividend of $0.15 per share, payable on October 1, 2021 to stockholders of record on September 17, 2021.

ABOUT UNITI

Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of March 31, 2021, Uniti owns over 125,000 fiber route miles, approximately 7.0 million fiber strand miles, and other communications real estate throughout the United States. Additional information about Uniti can be found on its website at www.uniti.com.

INVESTOR AND MEDIA CONTACTS:

Bill DiTullio, 501-850-0872
Vice President, Finance and Investor Relations
[email protected]



Posted on

Helmerich & Payne, Inc. Announces the Appointment of New Director

Helmerich & Payne, Inc. Announces the Appointment of New Director

TULSA, Okla.–(BUSINESS WIRE)–
Helmerich & Payne, Inc. (NYSE:HP) today announced that Belgacem Chariag was appointed to the Company’s Board of Directors.

Chariag is currently the Chairman, President and Chief Executive Officer of PQ Group Holdings, a leading integrated and innovative global provider of specialty catalysts, materials, chemicals and services. He served in multiple positions with Baker Hughes in his 9-year tenure where he rose to Chief Global Operations Officer. Prior to that role he served as President, Eastern Hemisphere; President, Global Products and Services; Chief Integration Officer; and President Global Operations. He also held various senior level positions during his 20-years with Schlumberger.

Chairman of the Board, Hans Helmerich stated, “We are pleased to have Belgacem join our Board of Directors. His broad and deep experience in oil field services worldwide, along with his understanding of changing and complex energy markets, will bring a valuable perspective.”

With Chariag’s appointment, Helmerich & Payne’s Board has expanded to include 12 members.

About Helmerich & Payne, Inc.

Founded in 1920, Helmerich & Payne, Inc. is committed to delivering industry leading drilling productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to deliver superior results for our customers and returns for shareholders. Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling rigs in conventional and unconventional plays around the world. H&P also develops and implements advanced automation, directional drilling and survey management technologies. For more information, visit www.helmerichpayne.com.

Helmerich & Payne uses its website as a channel of distribution for material company information. Such information is routinely posted and accessible on its Investor Relations website at www.helmerichpayne.com.

IR Contact:

Dave Wilson, Vice President of Investor Relations

918-588-5190

[email protected]

KEYWORDS: United States North America Oklahoma

INDUSTRY KEYWORDS: Energy Other Manufacturing Manufacturing Oil/Gas

MEDIA:

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Posted on

89bio to Participate in Upcoming Investor Conferences

SAN FRANCISCO, Aug. 03, 2021 (GLOBE NEWSWIRE) — 89bio, Inc. (Nasdaq: ETNB), a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of liver and cardio-metabolic diseases, today announced that Company’s Management will participate in the following upcoming investor conferences in August:

  • BTIG Virtual Biotechnology Conference 2021
    Format: Fireside chat and one-on-one investor meetings
    Date: Monday, August 9, 2021
    Presentation Time: 3:30 p.m. EDT
  • Canaccord Genuity 41st Annual Growth Conference
    Format: One-on-one investor meetings
    Date: Wednesday, August 11, 2021

BTIG-hosted events are intended for prospective and existing BTIG clients only. To listen to the live event, please contact your BTIG representative.

About 89bio

89bio is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of liver and cardio-metabolic diseases. The company’s lead product candidate, BIO89-100, is a specifically engineered glycoPEGylated analog of FGF21. BIO89-100 is being developed for the treatment of nonalcoholic steatohepatitis (NASH) and severe hypertriglyceridemia (SHTG). 89bio is headquartered in San Francisco with operations in Herzliya, Israel.

Investor Contact:
Ryan Martins
Chief Financial Officer
[email protected]

Media Contact:
Peter Duckler
773-343-3069
[email protected]



Posted on

Matterport Appoints Head of Product to Scale Global Platform

Preethy Vaidyanathan to lead product strategy and development for Matterport’s aggressive global expansion following public market debut

SUNNYVALE, Calif., Aug. 03, 2021 (GLOBE NEWSWIRE) — Matterport, Inc. (Nasdaq: MTTR), the leading spatial data company driving the digital transformation of the built world, today announced the appointment of Preethy Vaidyanathan as Head of Product to lead the company’s product strategy and development globally.

“We are excited to have Preethy join our leadership team during this pivotal time of growth for the company,” said Japjit Tulsi, Chief Technology Officer at Matterport. “Her growth mindset and deep experience scaling technology and cross functional teams for a global customer base will be invaluable as we strive to make every building, every space more valuable and accessible.”

Vaidyanathan specializes in scaling technology for rapid-growth technology platforms as they accelerate momentum to reach millions of consumers. Prior to joining Matterport, she was Chief Product Officer at Slice, the food tech marketplace platform powering 16,000 independent pizzerias across 3,000 cities and over 5 million consumers. During her tenure, Slice accelerated product launches to digitally transform local business to achieve cumulative sales of $1 billion in 2020.

Vaidyanathan was previously Chief Product Officer at Tapad, the global leader in digital identity resolution powering top brands to maximize their digital marketing investment. She helped transform Tapad from a previously unprofitable managed service to a profitable SaaS platform. During her tenure, Tapad experienced a 69% organic increase in global revenue, driven by expanding business, scaling use cases and global expansion. Prior to Tapad, Vaidyanathan has also led product teams at McAfee, AppNexus, Medialets, Vibrant Media and Efficient Frontier.

“Matterport’s ambition to turn buildings into data and make spatial data available for anyone and everyone is truly revolutionary,” said Vaidyanathan. “I’m eager to help shape the future of this transformational technology at such an exciting time.”

Vaidyanathan is an active thought leader as a member of Forbes’s Agency Council and her works are published in Modern Retail, MarTech Advisor, eMarketer and Wall Street Journal. She is a regular industry speaker and panelist. As a mentor at She Runs It, a League of Advertising Women, Vaidyanathan is passionate about advocating for women in tech. She holds a Master’s degree in Computer Science from the University of California.

Founded in 2011, Matterport has defined the spatial data category for the built world with its market-leading spatial data platform that transforms any space into an accurate and immersive digital twin. Hundreds of thousands of customers around the world have brought more than five million spaces online to date with the Matterport platform to more effectively access, manage and utilize them. The company has extended its market reach beyond residential real estate to include multifamily and commercial real estate; architecture, engineering and construction; retail; insurance and restoration; travel and hospitality; and facilities management. Matterport primarily operates under a recurring revenue SaaS model, and grew its subscriber base by more than 500% in 2020.

About Matterport

Matterport, Inc. (Nasdaq: MTTR) is leading the digital transformation of the built world. Our groundbreaking spatial data platform turns buildings into data to make nearly every space more valuable and accessible. Millions of buildings in more than 150 countries have been transformed into immersive Matterport digital twins to improve every part of the building lifecycle from planning, construction, and operations to documentation, appraisal and marketing. Learn more at matterport.com and browse a gallery of digital twins.

©2021 Matterport, Inc. All rights reserved. Matterport is a registered trademark and the Matterport logo is a trademark of Matterport, Inc. All other marks are the property of their respective owners.

Media Contact:
Naomi Little
Global Communications Manager
[email protected]
+44 203 874 6664

Investor Contact:
Soohwan Kim, CFA
VP, Investor Relations
[email protected]

Forward-Looking Statements

This document contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the benefits of the business combination, the services offered by Matterport, Inc. (“Matterport”) and the markets in which Matterport operates, business strategies, debt levels, industry environment, potential growth opportunities, the effects of regulations and Matterport’s projected future results. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “forecast,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).

Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including the expected benefits of Matterport’s partnership with SIMLAB, Matterport’s ability to implement business plans, forecasts, and other expectations in the industry in which Matterport competes, and identify and realize additional opportunities. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in documents filed by Matterport from time to time with the U.S. Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Matterport assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Matterport does not give any assurance that it will achieve its expectations.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5b73c2c1-7369-4b64-b304-64dcbfea9004



Posted on

Life Storage, Inc. Reports Second Quarter 2021 Results

Life Storage, Inc. Reports Second Quarter 2021 Results

BUFFALO, N.Y.–(BUSINESS WIRE)–Life Storage, Inc. (NYSE:LSI), a leading national owner and operator of self-storage properties, reported operating results for the quarter ended June 30, 2021. Certain share and per share information has been retrospectively adjusted to reflect the January 2021 three-for-two stock split made in the form of a 50% stock dividend.

Highlights for the Second Quarter Included:

  • Generated net income attributable to common shareholders of $57.5 million, or $0.74 per fully diluted common share.
  • Achieved adjusted funds from operations (“FFO”)(1) per fully diluted common share of $1.20, a 27.7% increase over the same period in 2020.
  • Increased same store revenue by 14.7% and same store net operating income (“NOI”)(2) by 20.2%, year-over-year.
  • Acquired 17 stores for $267.5 million, including nine stores from the Company’s third-party management platform.
  • Added 26 stores (gross) to the Company’s third-party management platform.

Joe Saffire, the Company’s Chief Executive Officer, stated, “I cannot be more pleased with how our team has performed during the past year. We continue to grow occupancy and drive revenue growth while controlling costs. We also continue to find accretive acquisitions, having invested a record $534 million in wholly owned stores during the first half of the year and our acquisition pipeline remains robust. We are excited about our new joint venture, which is adding 17 class A lease-up stores to our platform and providing further opportunity for growth. Our third-party management business continues to surpass our expectations as independent owners are attracted to our performance and innovative technology. Warehouse Anywhere, our unique and innovative tech-enabled business, continues to successfully execute on its growing pipeline of new clients in search of inventory management and last-mile logistics support.”

FINANCIAL RESULTS:

In the second quarter of 2021, the Company generated net income attributable to common shareholders of $57.5 million or $0.74 per fully diluted common share, compared to net income attributable to common shareholders of $36.5 million, or $0.52 per fully diluted common share, in the second quarter of 2020.

Funds from operations for the quarter were $1.22 per fully diluted common share compared to $0.94 for the same period last year. Adjusted FFO per fully diluted common share for the quarter was $1.20, after adjusting for a $1.3 million acquisition fee, compared to $0.94 for the quarter ended June 30, 2020.

OPERATIONS:

Revenues for the 531 stabilized stores wholly owned by the Company since December 31, 2019 increased 14.7% in the second quarter of 2021 compared to the same quarter of 2020. The increase largely resulted from the net impact of a 420 basis point increase in average occupancy and the net impact of an 8.3% increase in realized rental rates.

Same store operating expenses increased 3.9% for the second quarter of 2021 compared to the prior year period, primarily due to increased real estate taxes and repair and maintenance costs. The increases were partially offset by decreases in marketing expenses. Same store NOI increased 20.2% in the second quarter of 2021 as compared to the same quarter last year.

During the second quarter of 2021, the Company achieved same store revenue growth in each of its 31 major markets. Overall, the markets with the strongest positive revenue impact were: New York-Newark-Jersey City; Houston, TX; Chicago, IL; New England-Other and Buffalo-Upstate.

PORTFOLIO TRANSACTIONS:

Wholly Owned Portfolio

During the quarter, the Company acquired 17 stores in New Jersey (5), Texas (4), Florida (3), North Carolina (3) and New Hampshire (2) for a total purchase price of $267.5 million.

At June 30, 2021, the Company was under contract to acquire four self-storage facilities in New Hampshire (2), Arizona (1) and Florida (1) for an aggregate purchase price of $54.1 million. The Company acquired two of these facilities subsequent to quarter end for $22.1 million. Also subsequent to quarter end, the Company entered into a contract to acquire four self-storage facilities in Texas for an aggregate purchase price of $47.5 million. The purchases of the remaining facilities are subject to customary conditions to closing, and there is no assurance that any of these facilities will be acquired.

As of the date of this press release, the Company has acquired 35 stores for $555.8 million since January 1, 2021.

Joint Venture Portfolio

During the quarter, the Company acquired a 20% minority interest, for which the Company contributed $28.7 million, in 17 stores in Wisconsin (5), Florida (4), Georgia (2), Illinois (2), Connecticut (1), New Jersey (1), New York (1) and North Carolina (1).

THIRD-PARTY MANAGEMENT:

The Company continues to aggressively and profitably grow its third-party management platform. During the quarter, the Company added 26 stores (gross). As of quarter end, the Company managed 340 facilities in total, including those in which it owns a minority interest.

FINANCIAL POSITION:

At June 30, 2021, the Company had approximately $29.9 million of cash on hand, and approximately $359.9 million available on its line of credit.

During the three months ended June 30, 2021, the Company issued 1,520,125 shares of common stock under its continuous equity offering program at a weighted average issue price of $98.67 per share, generating net proceeds after expenses of $148.5 million.

Below are key financial ratios at June 30, 2021:

  • Debt to Enterprise Value (at $107.35/share)    21.9%
  • Debt to Book Cost of Storage Facilities            40.0%
  • Debt to Recurring Annualized EBITDA              5.0x
  • Debt Service Coverage                                     5.3x

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company’s Board of Directors approved a quarterly dividend of $0.74 per share, or $2.96 annualized, on a post-split basis. The dividend was paid on July 26, 2021 to shareholders of record on July 14, 2021.

YEAR 2021EARNINGS GUIDANCE:

The following assumptions covering operations have been utilized in formulating guidance for 2021:

Year 2021 Earnings Guidance

 

Current Guidance Range

Prior Guidance Range

(May 4, 2021)

Same Store Revenue

 

10.50%

–

11.50%

 

5.50%

–

6.50%

Same Store Operating Costs (excluding property taxes)

 

2.25%

–

3.25%

 

2.25%

–

3.25%

Same Store Property Taxes

 

6.75%

–

7.75%

 

6.75%

–

7.75%

Total Same Store Operating Expenses

 

4.00%

–

5.00%

 

4.00%

–

5.00%

Same Store Net Operating Income

 

13.5%

–

14.5%

 

6.50%

–

7.50%

General & Administrative

 

$59.5M

–

$60.5M

 

$57M

–

$58M

Expansions & Enhancements

 

$40M

–

$50M

 

$40M

–

$50M

Capital Expenditures

 

$21M

–

$26M

 

$21M

–

$26M

Wholly Owned Acquisitions

 

$800M

–

$1,000M

 

$550M

–

$600M

Joint Venture Investments

 

$28M

–

$30M

 

$20M

–

$25M

 

 

 

 

 

 

 

 

 

Adjusted Funds from Operations per Share

 

$4.69

–

$4.79

 

$4.33

–

$4.41

 

Reconciliation of Guidance

3Q 2021

Range or Value

FY 2021

Range or Value

Earnings per share attributable to common shareholders – diluted

$0.73 – $0.77

$2.72 – $2.82

Plus: real estate depreciation and amortization

0.51 – 0.51

1.97 – 1.97

FFO per share

$1.24 – $1.28

$4.69 – $4.79

 

 

 

The Company’s 2021 same store pool consists of the 531 stabilized stores wholly owned since December 31, 2019. Thirty of the stores purchased through June 30, 2021 at certificate of occupancy or that were in the early stages of lease-up are not included, regardless of their current occupancies. The Company believes that occupancy levels achieved during the lease-up period, using discounted rates, are not truly indicative of a new store’s performance, and therefore do not result in a meaningful year-over-year comparison in future years. The Company will include such stores in its same store pool in the second year after the stores achieve 80% sustained occupancy using market rates and incentives.

FORWARD LOOKING STATEMENTS:

When used in this news release, the words “intends,” “believes,” “expects,” “anticipates,” and similar expressions are intended to identify “forward-looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the effect of competition from new self-storage facilities, which would cause rents and occupancy rates to decline; risks associated with the COVID-19 global health crisis or similar events, including but not limited to (i) the impact to the health of our employees and/or customers, (ii) the negative impacts to the economy and to self-storage customers which could reduce the demand for self-storage or reduce our ability to collect rent, (iii) reducing or eliminating our ability to increase rents charged to our current or future customers, (iv) limiting our ability to collect rent from or evict past due customers, (v) we could see an increase in move-outs of longer-term customers due to the economic uncertainty and significant rise in unemployment resulting from the COVID-19 global health crisis which could lead to lower occupancies and reduced average rental rates as longer-term customers are replaced with new customers at lower rates, and (vi) potential negative impacts on the cost and availability of debt and equity which could have a negative impact on our capital and growth plans; the Company’s ability to evaluate, finance and integrate acquired self-storage facilities into the Company’s existing business and operations; the Company’s ability to effectively compete in the industry in which it does business; the Company’s existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company’s outstanding floating rate debt; the Company’s ability to comply with debt covenants; any future ratings on the Company’s debt instruments; regional concentration of the Company’s business may subject it to economic downturns in the states of Florida and Texas; the Company’s reliance on its call center; the Company’s cash flow may be insufficient to meet required payments of operating expenses, principal, interest and dividends; and tax law changes that may change the taxability of future income.

CONFERENCE CALL:

Life Storage will hold its Second Quarter Earnings Release Conference Call at 9:00 a.m. Eastern Time on Wednesday, August 4, 2021. To help avoid connection delays, participants are encouraged to pre-register using this link. Anyone unable to pre-register may access the conference call at 888.506.0062 (domestic) or 973.528.0011 (international); passcode 674512 or request to be joined into the Life Storage call. Management will accept questions from registered financial analysts after prepared remarks; all others are encouraged to listen to the call via webcast by accessing the investor relations tab at lifestorage.com. The webcast will be archived for a period of 90 days; a telephone replay will also be available for 14 days by calling 877.481.4010 and entering passcode 42035.

ABOUT LIFE STORAGE, INC:

Life Storage, Inc. is a self-administered and self-managed equity REIT that is in the business of acquiring and managing self-storage facilities. Located in Buffalo, New York, the Company operates more than 950 storage facilities in 33 states. The Company serves both residential and commercial storage customers with storage units rented by month. Life Storage consistently provides responsive service to more than 575,000 customers, making it a leader in the industry. For more information visit http://invest.lifestorage.com.

Life Storage, Inc.  
Balance Sheet Data  
(unaudited)  
   

June 30,

  

December 31,
(dollars in thousands)

2021

  

2020
Assets  
Investment in storage facilities:  
Land

$

1,038,136

 

 

$

951,813

 

Building, equipment and construction in progress

 

4,849,523

 

 

 

4,378,510

 

 

5,887,659

 

 

 

5,330,323

 

Less: accumulated depreciation

 

(937,451

)

 

 

(873,178

)

Investment in storage facilities, net

 

4,950,208

 

 

 

4,457,145

 

Cash and cash equivalents

 

29,881

 

 

 

54,400

 

Accounts receivable

 

14,087

 

 

 

15,464

 

Receivable from joint ventures

 

635

 

 

 

1,064

 

Investment in joint ventures

 

139,495

 

 

 

143,042

 

Prepaid expenses

 

10,211

 

 

 

8,326

 

Intangible asset – in-place customer leases

 

7,155

 

 

 

5,409

 

Trade name

 

16,500

 

 

 

16,500

 

Other assets

 

26,916

 

 

 

26,498

 

Total Assets

$

5,195,088

 

 

$

4,727,848

 

   
Liabilities  
Line of credit

$

140,000

 

 

$

–

 

Term notes, net

 

2,156,823

 

 

 

2,155,457

 

Accounts payable and accrued liabilities

 

109,508

 

 

 

112,654

 

Deferred revenue

 

22,587

 

 

 

17,416

 

Mortgages payable

 

37,406

 

 

 

37,777

 

Total Liabilities

 

2,466,324

 

 

 

2,323,304

 

   
Noncontrolling redeemable Operating Partnership Units at redemption value

 

35,765

 

 

 

26,446

 

   
Equity  
Common stock

 

781

 

 

 

495

 

Additional paid-in capital

 

3,002,782

 

 

 

2,671,311

 

Accumulated deficit

 

(305,981

)

 

 

(288,667

)

Accumulated other comprehensive loss

 

(4,583

)

 

 

(5,041

)

Total Shareholders’ Equity

 

2,692,999

 

 

 

2,378,098

 

Total Liabilities and Shareholders’ Equity

$

5,195,088

 

 

$

4,727,848

 

   
Life Storage, Inc.
Consolidated Statements of Operations
(unaudited)
April 1, 2021 April 1, 2020 January 1, 2021 January 1, 2020
to to to to
(dollars in thousands, except share data) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
 
Revenues
Rental income

$

163,096

 

$

128,828

 

$

313,379

 

$

257,736

 

Other operating income

 

18,026

 

 

14,009

 

 

35,040

 

 

27,631

 

Management and acquisition fee income

 

6,140

 

 

4,176

 

 

10,730

 

 

8,589

 

Total operating revenues

 

187,262

 

 

147,013

 

 

359,149

 

 

293,956

 

 
Expenses
Property operations and maintenance

 

38,794

 

 

32,247

 

 

77,315

 

 

65,097

 

Real estate taxes

 

20,510

 

 

17,614

 

 

40,397

 

 

35,022

 

General and administrative

 

15,083

 

 

12,223

 

 

29,266

 

 

25,129

 

Depreciation and amortization

 

33,118

 

 

27,536

 

 

64,406

 

 

54,564

 

Amortization of in-place customer leases

 

2,653

 

 

1,451

 

 

4,724

 

 

2,753

 

Total operating expenses

 

110,158

 

 

91,071

 

 

216,108

 

 

182,565

 

 
Gain on sale of real estate

 

–

 

 

–

 

 

–

 

 

302

 

Income from operations

 

77,104

 

 

55,942

 

 

143,041

 

 

111,693

 

 
Other income (expense)
Interest expense (A)

 

(20,774

)

 

(20,266

)

 

(41,119

)

 

(40,513

)

Interest and dividend income

 

7

 

 

2

 

 

786

 

 

7

 

Equity in income of joint ventures

 

1,428

 

 

970

 

 

2,649

 

 

2,086

 

 
Net income

 

57,765

 

 

36,648

 

 

105,357

 

 

73,273

 

Net income attributable to noncontrolling interests in the Operating Partnership

 

(249

)

 

(191

)

 

(459

)

 

(383

)

Net income attributable to common shareholders

$

57,516

 

$

36,457

 

$

104,898

 

$

72,890

 

 
Earnings per common share attributable to common shareholders – basic

$

0.75

 

$

0.52

 

$

1.38

 

$

1.04

 

 
Earnings per common share attributable to common shareholders – diluted

$

0.74

 

$

0.52

 

$

1.37

 

$

1.04

 

 
Common shares used in basic earnings per share calculation

 

77,057,520

 

 

70,267,332

 

 

76,222,426

 

 

70,141,595

 

 
Common shares used in diluted earnings per share calculation

 

77,219,999

 

 

70,359,207

 

 

76,365,100

 

 

70,242,776

 

 
Dividends declared per common share

$

0.7400

 

$

0.7133

 

$

1.4800

 

$

1.4267

 

 
 
(A) Interest expense for the period ending June 30 consists of the following
Interest expense

$

20,171

 

$

19,678

 

$

39,914

 

$

39,311

 

Amortization of debt issuance costs

 

603

 

 

588

 

 

1,205

 

 

1,202

 

Total interest expense

$

20,774

 

$

20,266

 

$

41,119

 

$

40,513

 

Life Storage, Inc.
Computation of Funds From Operations (FFO) (1)
(unaudited)
April 1, 2021 April 1, 2020 January 1, 2021 January 1, 2020
to to to to
(dollars in thousands, except share data) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
 
Net income attributable to common shareholders

$

57,516

 

$

36,457

 

$

104,898

 

$

72,890

 

Noncontrolling interests in the Operating Partnership

 

249

 

 

191

 

 

459

 

 

383

 

Depreciation of real estate and amortization of intangible
assets exclusive of debt issuance costs

 

35,257

 

 

28,398

 

 

68,076

 

 

56,140

 

Depreciation and amortization from unconsolidated joint ventures

 

1,241

 

 

1,682

 

 

2,443

 

 

3,478

 

Funds from operations allocable to noncontrolling
interest in Operating Partnership

 

(407

)

 

(348

)

 

(766

)

 

(694

)

Funds from operations available to common shareholders

 

93,856

 

 

66,380

 

 

175,110

 

 

132,197

 

FFO per share – diluted

$

1.22

 

$

0.94

 

$

2.29

 

$

1.88

 

 
Adjustments to FFO
Gain on sale of land

 

–

 

 

–

 

 

–

 

 

(302

)

Acquisition fee

 

(1,280

)

 

–

 

 

(1,280

)

 

(217

)

Funds from operations resulting from non-recurring items
allocable to noncontrolling interest in Operating Partnership

 

5

 

 

–

 

 

5

 

 

3

 

Adjusted funds from operations available to common shareholders

 

92,581

 

 

66,380

 

 

173,835

 

 

131,681

 

Adjusted FFO per share – diluted

$

1.20

 

$

0.94

 

$

2.28

 

$

1.87

 

 
Common shares – diluted

 

77,219,999

 

 

70,359,207

 

 

76,365,100

 

 

70,242,776

 

Life Storage, Inc.
Computation of Net Operating Income (2)
(unaudited)
April 1, 2021 April 1, 2020 January 1, 2021 January 1, 2020
to to to to
(dollars in thousands) June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020
 
Net Income

$

57,765

 

$

36,648

 

$

105,357

 

$

73,273

 

General and administrative

 

15,083

 

 

12,223

 

 

29,266

 

 

25,129

 

Depreciation and amortization

 

35,771

 

 

28,987

 

 

69,130

 

 

57,317

 

Gain on sale of real estate

 

–

 

 

–

 

 

–

 

 

(302

)

Interest expense

 

20,774

 

 

20,266

 

 

41,119

 

 

40,513

 

Interest and dividend income

 

(7

)

 

(2

)

 

(786

)

 

(7

)

Equity in income of joint ventures

 

(1,428

)

 

(970

)

 

(2,649

)

 

(2,086

)

Net operating income

$

127,958

 

$

97,152

 

$

241,437

 

$

193,837

 

 
Same store (4)

$

98,534

 

$

81,949

 

$

188,469

 

$

164,758

 

Net operating income related to tenant reinsurance

 

8,280

 

 

7,319

 

 

16,118

 

 

14,195

 

Other stores and management fee income

 

21,144

 

 

7,884

 

 

36,850

 

 

14,884

 

Total net operating income

$

127,958

 

$

97,152

 

$

241,437

 

$

193,837

 

 
Life Storage, Inc.
Quarterly Same Store Data (3) (4) 531 mature stores owned since 12/31/19
(unaudited)
April 1, 2021 April 1, 2020
to to Percentage
(dollars in thousands) June 30, 2021 June 30, 2020 Change Change
 
Revenues:
Rental income

$

140,269

$

122,383

$

17,886

 

14.6

%

Other operating income

 

1,778

 

1,463

 

315

 

21.5

%
Total operating revenues

 

142,047

 

123,846

 

18,201

 

14.7

%

 
Expenses:
Payroll and benefits

 

9,423

 

9,420

 

3

 

0.0

%

Real estate taxes

 

17,516

 

16,592

 

924

 

5.6

%

Utilities

 

3,301

 

3,212

 

89

 

2.8

%

Repairs and maintenance

 

4,146

 

3,449

 

697

 

20.2

%

Office and other operating expense

 

3,791

 

3,479

 

312

 

9.0

%

Insurance

 

1,566

 

1,500

 

66

 

4.4

%

Advertising

 

48

 

64

 

(16

)

-25.0

%

Internet marketing

 

3,722

 

4,181

 

(459

)

-11.0

%
Total operating expenses

 

43,513

 

41,897

 

1,616

 

3.9

%
 
Net operating income (2)

$

98,534

$

81,949

$

16,585

 

20.2

%
 
 
QTD Same store move ins

 

51,060

 

53,371

 

(2,311

)

 
QTD Same store move outs

 

44,668

 

43,027

 

1,641

 

Other Comparable Quarterly Same Store Data (4)
(unaudited)
April 1, 2021 April 1, 2020
to to Percentage
June 30, 2021 June 30, 2020 Change Change
2020 Same store pool (515 stores)
Revenues

$

137,566

$

119,932

$

17,634

14.7

%

Expenses

 

42,209

 

40,640

 

1,569

3.9

%
Net operating income

$

95,357

$

79,292

$

16,065

20.3

%
 
 
2019 Same store pool (502 stores)
Revenues

$

134,557

$

117,456

$

17,101

14.6

%

Expenses

 

41,121

 

39,602

 

1,519

3.8

%
Net operating income

$

93,436

$

77,854

$

15,582

20.0

%
Life Storage, Inc.
Year to Date Same Store Data (3) (4) 531 mature stores owned since 12/31/19
(unaudited)
January 1, 2021 January 1, 2020
to to Percentage
(dollars in thousands) June 30, 2021 June 30, 2020 Change Change
 
Revenues:
Rental income

$

273,412

$

246,494

$

26,918

 

10.9

%

Other operating income

 

3,371

 

2,957

 

414

 

14.0

%
Total operating revenues

 

276,783

 

249,451

 

27,332

 

11.0

%

 
Expenses:
Payroll and benefits

 

19,445

 

19,261

 

184

 

1.0

%

Real estate taxes

 

34,940

 

33,184

 

1,756

 

5.3

%

Utilities

 

7,095

 

6,832

 

263

 

3.8

%

Repairs and maintenance

 

8,848

 

7,494

 

1,354

 

18.1

%

Office and other operating expense

 

7,827

 

7,282

 

545

 

7.5

%

Insurance

 

3,089

 

3,006

 

83

 

2.8

%

Advertising

 

96

 

128

 

(32

)

-25.0

%

Internet marketing

 

6,974

 

7,506

 

(532

)

-7.1

%
Total operating expenses

 

88,314

 

84,693

 

3,621

 

4.3

%
 
Net operating income (2)

$

188,469

$

164,758

$

23,711

 

14.4

%
 
 
YTD Same store move ins

 

97,898

 

99,760

 

(1,862

)

 
YTD Same store move outs

 

86,826

 

87,485

 

(659

)

Life Storage, Inc.
Other Data – unaudited Same Store (3) All Stores (5)

 

2021

 

2020

 

2021

 

2020
 
Weighted average quarterly occupancy

 

95.1%

 

90.9%

 

94.7%

 

90.0%

 
Occupancy at June 30

 

95.7%

 

91.8%

 

95.0%

 

91.0%

 
Rent per occupied square foot

$15.34

$14.17

$15.32

$14.12

 
Life Storage, Inc.
Other Data – unaudited (continued)
 
Investment in Storage Facilities: (unaudited)
The following summarizes activity in storage facilities during the six months ended June 30, 2021:
 
Beginning balance

$

5,330,323

 

Property acquisitions

 

527,214

 

Improvements and equipment additions:
Expansions

 

4,469

 

Roofing, paving, and equipment:
Stabilized stores

 

10,970

 

Recently acquired stores

 

1,792

 

Change in construction in progress (Total CIP $31.9 million)

 

13,232

 

Dispositions and Impairments

 

(341

)

Storage facilities at cost at period end

$

5,887,659

 

 
 
Comparison of Selected G&A Costs (unaudited) Quarter Ended
June 30, 2021 June 30, 2020
 
Management and administrative salaries and benefits

$

9,784

 

$

6,704

Training

 

143

 

 

186

Call center

 

751

 

 

750

Life Storage Solutions costs

 

277

 

 

150

Income taxes

 

568

 

 

871

Legal, accounting and professional

 

893

 

 

911

Other administrative expenses (6)

 

2,667

 

 

2,651

$

15,083

 

$

12,223

 
Net rentable square feet June 30, 2021
Wholly owned properties

 

45,795,071

 

Joint venture properties

 

7,896,032

 

Third party managed properties

 

17,716,675

 

 

71,407,778

 

 
June 30, 2021 June 30, 2020
 
Common shares outstanding

 

78,041,891

 

 

70,377,668

Operating Partnership Units outstanding

 

332,399

 

 

365,949

(1) We believe that Funds from Operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.
 
Funds from operations is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income available to common shareholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance, FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.
 
Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.
 
(2) Net operating income or “NOI” is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, operating lease expenses, depreciation and amortization expense, any losses on sale of real estate, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, any gains on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance, because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, NOI is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending on accounting methods and book value of assets. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income.
 
(3) Includes the stores owned and/or managed by the Company for the entire periods presented that are consolidated in our financial statements. Does not include unconsolidated joint ventures or other stores managed by the Company.
 
(4) Revenues and expenses do not include items related to tenant reinsurance.
 
(5) Does not include unconsolidated joint venture stores or other stores managed by the Company.
 
(6) Other administrative expenses include office rent, travel expense, investor relations and miscellaneous other expenses.

 

Life Storage, Inc.

David Dodman

(716) 229-8284

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Construction & Property REIT

MEDIA:

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Posted on

Greenlight Capital Re, Ltd. Announces New Director Appointments

GRAND CAYMAN, Cayman Islands, Aug. 03, 2021 (GLOBE NEWSWIRE) — Greenlight Capital Re, Ltd. (Nasdaq: GLRE) (“Greenlight Re” or the “Company”) announced today that the board of directors of the Company (the “Board”) has been expanded to nine members and that each of Johnny Ferrari, Ursuline Foley and Victoria Guest has been appointed as an independent director of the Board effective July 30, 2021.

David Einhorn, Chairman of the Board, stated “We are honored to welcome John, Urs and Victoria to the Board. Each brings a wealth of financial industry, operational and governance experience and expertise that will complement the Board and assist our management as Greenlight Re continues to build upon our recent successes.”

Mr. Ferrari is currently a consultant to companies in the financial services industry after having retired from KPMG International (“KPMG”) in June 2021. Prior to his retirement, Mr. Ferrari specialized in providing audit services to companies in the banking, insurance and asset management industries. Mr. Ferrari held multiple roles for KPMG and its member firms, including serving as a member of the Global Monitoring Group for KPMG International, Chief Operating Officer for Audit Quality for KPMG EMA Region and as an Audit Partner for KPMG Cayman Islands, including serving as Partner in Charge of Risk Management. Mr. Ferrari also served as a member of KPMG’s Executive Management Committee and participated on the Audit Quality Professional Practice Steering Committee. Mr. Ferrari holds a Bachelor’s degree from the University of Toronto and is a member of the Charter Professional Accountants of Ontario and Cayman Islands Institute of Professional Accountants.

Ms. Foley currently serves on the board of directors of Provident Financial Services, Inc. and Provident Bank (NYSE: PFS) and is a member of the Risk and Technology committees. Ms. Foley also serves as a director of DOCOsoft Ltd., a software company providing claims management, document management and workflow software solutions for the global insurance and financial services markets. Previously, Ms. Foley served as Chief Corporate Operations Officer and Managing Director of XL Group PLC, a global provider of commercial insurance and reinsurance, which became AXA XL in September 2018. Ms. Foley has also held several senior management roles, including Chief Information Officer, Chief Data Officer, Enterprise Enablement Strategy for XL Group PLC and Senior Vice President, Chief Information Officer of Reinsurance and Financial Lines for XL Reinsurance. Ms. Foley holds both a Bachelor of Science and Teaching Diploma from University College Cork, Ireland, a Master of Science from PACE University and a Technology Leadership certificate from Babson University. Ms. Foley has also received certificates from NYC College of Insurance and the College of Finance, NYC.

Ms. Guest currently serves on the board of directors of the Bessemer Group, Incorporated and its principal subsidiary banks, and the board of managers of Bessemer Securities LLC and its principal subsidiary. Previously, Ms. Guest was General Counsel and Corporate Secretary of Hamilton Insurance Group, a Bermuda-based holding company for insurance and reinsurance operations, from December 2013 until retirement in November 2017. Ms. Guest has also served as General Counsel and Corporate Secretary of SAC Re Holdings, Ltd, a Bermuda-based reinsurer, as well as Ariel Holdings and RAM Holdings. Ms. Guest has a Juris Doctor from Harvard Law School and a Bachelor of Arts from Stanford University.

About Greenlight Capital Re, Ltd.

Greenlight Re (www.greenlightre.com) provides multi-line property and casualty reinsurance through its licensed and regulated reinsurance entities in the Cayman Islands and Ireland. The Company complements its underwriting activities with a non-traditional investment approach designed to achieve higher rates of return over the long term than reinsurance companies that exclusively employ more traditional investment strategies. In 2018, the Company launched its Greenlight Re Innovations unit, which supports technology innovators in the (re)insurance space by providing investment, risk capacity, and access to a broad insurance network.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. federal securities laws. The Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. Federal securities laws. These statements involve risks and uncertainties that could cause actual results to differ materially from those contained in forward-looking statements made on behalf of the Company. These risks and uncertainties include the impact of general economic conditions and conditions affecting the insurance and reinsurance industry, the adequacy of our reserves, our ability to assess underwriting risk, trends in rates for property and casualty insurance and reinsurance, competition, investment market fluctuations, trends in insured and paid losses, catastrophes, regulatory and legal uncertainties and other factors described in the Company’s annual report on Form 10-K filed with the Securities Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as provided by law.

For further information contact:

Investor Relations:

Adam Prior
The Equity Group Inc.
(212) 836-9606
[email protected] 



Posted on

Instructure to Announce Second Quarter 2021 Financial Results on August 17, 2021

Instructure to Announce Second Quarter 2021 Financial Results on August 17, 2021

SALT LAKE CITY–(BUSINESS WIRE)–
Instructure Holdings, Inc. (Instructure) (NYSE: INST), the makers of the Canvas Learning Management System, today announced that it will report financial results for its second quarter ended June 30, 2021 on Tuesday, August 17, 2021 after market close.

Instructure will host a conference call and webcast at 3:00 p.m. Mountain Time (or 5:00 p.m. Eastern Time) on Tuesday, August 17, 2021 to discuss its financial results. The conference call can be accessed by dialing (833) 921-1674 from the United States and Canada or (236) 389-2674 internationally with conference ID 8896213. A live webcast and replay of the conference call can be accessed from the investor relations page of Instructure’s website at ir.instructure.com.

Following the completion of the call through 9:59 p.m. Mountain Time (or 11:59 p.m. Eastern Time) on August 24, 2021, a telephone replay will be available by dialing (800) 585-8367 from the United States and Canada or (416) 621-4642 internationally with conference ID 8896213.

About Instructure

Instructure is an education technology company dedicated to helping everyone learn together. We amplify the power of teaching and elevate the learning process, leading to improved student outcomes. Today, Instructure supports more than 30 million educators and learners at more than 6,000 organizations around the world.

Cory Edwards

Vice President, Corporate Communications

Instructure

(801) 869-5258

[email protected]

Investor Relations

April Scee

Managing Director, ICR, Inc.

(917) 497-8992

[email protected]

KEYWORDS: United States North America Utah

INDUSTRY KEYWORDS: Technology Other Technology Software Other Education Continuing University Primary/Secondary Data Management Education

MEDIA:

Posted on

Whitestone REIT Reports Second Quarter 2021 Results

HOUSTON, Aug. 03, 2021 (GLOBE NEWSWIRE) — Whitestone REIT (NYSE: WSR) (“Whitestone” or the “Company”) today announced its operating and financial results for the second quarter of 2021. Whitestone seeks to create neighborhood center communities in its high quality open-air shopping centers that it acquires, owns, manages, develops, and redevelops primarily in the largest, fastest-growing and most affluent markets in the Sunbelt.

“Beyond the re-activation of our strategic growth plan, our well-located portfolio produced significant increases in our financial results in the second quarter. Specifically, Whitestone’s strength and resiliency continues to be demonstrated through increasing revenues and occupancy, reduction of debt and successful scaling of expenses. As the economy continues to recover, we have positioned the Company to reap the benefits and deliver long-term value from our strategically chosen business-friendly, high-growth markets.”

– Jim Mastandrea, Chairman and Chief Executive Officer

Financial Summary:

All per share amounts are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.

  • Net Revenues of $30.6 million and $59.7 million in the three and six months ended June 30, 2021, respectively
  • Net Income attributable to common shareholders of $0.12 and $0.15 per share in the three and six months ended June 30, 2021, respectively
  • Funds from Operations (“FFO”) Core of $0.26 and $0.50 per share in the three and six months ended June 30, 2021, respectively
  • General and Administrative Expenses, as a percentage of revenue, of 14.6% in the three months ended June 30, 2021. This compares to 16.9% for the year ended December 31, 2020 (1)
  • Net Debt to EBITDAre-Adjusted Ratio of 8.2X for the quarter ended June 30, 2021. This compares to 9.4X for the first quarter of 2021 (2)
  • Same-Store Net Operating Income (“NOI”) of $20.2 million for the three months ended June 30, 2021, representing an increase of 8.4% from the three months ended June 30, 2020

Second Quarter Operating and Financial Highlights:

All per share amounts are on a diluted per common share and operating partnership (“OP”) unit basis unless stated otherwise.

  • Revenues of $30.6 million vs $29.0 million in prior quarter and $27.6 million in 2Q 2020
  • Net Income attributable to common shareholders per share of $0.12 vs $0.03 in prior quarter and $0.01 in Q2 2020
  • FFO Core per share of $0.26 vs $0.23 in the prior quarter and $0.22 in 2Q 2020
  • Same-store NOI increased 8.4% from 2Q 2020
  • Comparable GAAP-based leasing spreads of 6.8% for the quarter
  • Debt to EBITDAre-Adjusted improved to 8.2X from 9.4X in the prior quarter and 9.8X in 2Q 2020
  • Total Net Debt reduced $47.6 million from a year ago(2)
  • Debt to Gross Book Value improved to 52% vs 56% from a year ago
  • G&A, as a percentage of revenue, improved to 14.6% from 15.7% in 2Q 2020
  • Annualized Base Rent per leased square foot grew to $19.95 from $19.71 from the prior quarter
  • Acquired Lakeside Market in Dallas, TX for $53.24 million on July 8, 2021


Financial Results


Reconciliations of Net Income Attributable to Whitestone REIT to FFO, FFO Core and NOI are included herein.

Net income attributable to common shareholders for the quarter ended June 30, 2021 was $5.1 million, or $0.12 per diluted share. Net income attributable to common shareholders for the quarter ended June 30, 2020 was $0.4 million, or $0.01 per diluted share.

FFO for the quarter ended June 30, 2021 was $10.6 million, or $0.24 per diluted share, as compared to $8.4 million, or $0.19 per diluted share for the quarter ended June 30, 2020. FFO Core for the quarter ended June 30, 2021 was $11.9 million or $0.26 per diluted share, compared to $9.6 million, or $0.22 per diluted share for the quarter ended June 30, 2020.


Operating Results

For the periods ending June 30, 2021 and 2020, the Company’s operating highlights were as follows:

  Second Quarter 2021 Second Quarter 2020
Occupancy:    
Wholly Owned Properties 89.9% 89.2%
Same Store Property Net Operating Income Change (3) 8.4% (7.9)%
     
Rental Rate Growth – Total (GAAP Basis): 6.8% 11.3%
New Leases 3.1% 3.4%
Renewal Leases 7.9% 13.5%
     
Leasing Transactions:    
Number of New Leases 35 21
New Leases – Lease Term Revenue (millions) $12.3 $5.2
Number of Renewal Leases 57 43
Renewal Leases – Lease Term Revenue (millions) $17.5 $9.8


Real Estate Portfolio Update


Community Centered Properties



TM



Portfolio Statistics:

As of June 30, 2021, Whitestone wholly owned 58 Community Centered PropertiesTM with 5.0 million square feet of gross leasable area (“GLA”). Five of the 58 Community Centered PropertiesTM are land parcels held for future development. The portfolio is comprised of 30 properties in Texas, 27 in Arizona and one in Illinois. Whitestone’s Community Centered PropertiesTM are located in the MSA’s of Austin (4), Chicago (1), Dallas-Fort Worth (8), Houston (15), Phoenix (27) and San Antonio (3). In addition to being business friendly, these are six of the top markets in the country in terms of size, economic strength and population growth. 2017 estimates show the projected 5-year population growth rates for both Austin and Dallas-Fort Worth to be 9.7%, San Antonio to be 8.6%, Houston to be 8.0%, and Phoenix to be 6.6%(4). The Company’s properties in these markets are generally located on the best retail corners embedded in affluent communities. The Company also owns an 81.4% equity interest in and manages eight properties containing 0.9 million square feet of GLA through its investment in Pillarstone OP.

At the end of the second quarter, the Company’s diversified tenant base was comprised of 1,440 tenants, with the largest tenant accounting for only 2.9% of annualized base rental revenues. Lease terms range from less than one year for smaller tenants to more than 15 years for larger tenants. Whitestone’s leases generally include minimum monthly lease payments and tenant reimbursements for payment of taxes, insurance and maintenance, and typically exclude restrictive lease clauses.


Subsequent Event

On July 8, 2021, we acquired Lakeside Market, a property that meets our Community Centered Property® strategy, for $53.2 million in cash and net prorations. Lakeside Market, a 163,000 square foot property, was 80.5% leased at the time of purchase and is located in Plano, Texas.


Balance Sheet and Liquidity

At June 30, 2021, Whitestone had $22.3 million in cash and cash equivalents, $55.1 million of availability and $160.5 million of capacity under its credit facility.

The Company has undepreciated real estate assets of $1.1 billion at June 30, 2021.

At June 30, 2021, 51 of the Company’s wholly owned 58 properties were unencumbered by mortgage debt, with an undepreciated cost basis of $828.3 million. At June 30, 2021, the Company had total real estate debt, net of cash, of $592.1 million, of which approximately 89% was subject to fixed interest rates. The Company’s weighted average interest rate on all fixed rate debt as of the end of the second quarter was 4.1% and the weighted average remaining term was 3.9 years.


Dividend

On June 11, 2021, the Company declared a quarterly cash distribution of $0.1075 per common share and OP unit for the second quarter of 2021, to be paid in three equal installments of $0.035833 in July, August and September of 2021.


Conference Call Information

In conjunction with the issuance of its financial results, the Company invites you to listen to its earnings release conference call to be broadcast live on Wednesday, August 4, 2021 at 10:00 A.M. Central Time. The call will be led by Jim Mastandrea, Chairman and Chief Executive Officer, and Dave Holeman, Chief Financial Officer. Conference call access information is as follows:

To listen to a webcast of the conference call, click on the Investor Relations tab of the Company’s website, www.whitestonereit.com, and then click on the webcast link. A replay of the call will be available on Whitestone’s website via the webcast link until the Company’s next earnings release. Additional information about Whitestone can be found on the Company’s website.

Dial-in number for domestic participants: 1-877-705-6003
Dial-in number for international participants:  1-201-493-6725

The conference call will be recorded, and a telephone replay will be available through Wednesday, August 18, 2021. Replay access information is as follows:

Replay number for domestic participants: 1-844-512-2921
Replay number for international participants: 1-412-317-6671
Passcode (for all participants): 13721233

The second quarter earnings release and supplemental data package will be located in the Investor Relations section of the Company’s website. For those without internet access, the earnings release and supplemental data package will be available by mail upon request. To receive a copy, please call the Company’s Investor Relations line at (713) 435-2219.


Supplemental Financial Information

The second quarter earnings release, supplemental data package and details regarding Whitestone’s results of operations, communities and tenants are available in the Investor Relations section of the Company’s website at www.whitestonereit.com. For those without Internet access, the earnings release and supplemental data package will be available by mail upon request. To receive a copy, please call the Company’s Investor Relations line at (713)435-2219.


About Whitestone REIT

Whitestone is a community-centered shopping center REIT that acquires, owns, manages, develops and redevelops high-quality open-air neighborhood centers primarily in the largest, fastest-growing and most affluent markets in the Sunbelt. Whitestone seeks to create communities that thrive through creating local connections between consumers in the surrounding communities and a well-crafted mix of national, regional and local tenants that provide daily necessities, needed services, entertainment and experiences. Whitestone is a monthly dividend paying stock and has consistently paid dividends for more than 15 years. Whitestone’s strong, balanced and managed capital structure provides stability and flexibility for growth, and positions Whitestone to perform well through economic cycles. For additional information, please visit www.whitestonereit.com.

Footnotes:


(1)
 		 Inclusive of pro rata share of revenue of unconsolidated investment in real estate partnership.

(2)
 		 Total Net Debt is defined as outstanding debt plus pro rata share of outstanding debt of real estate partnership less cash and pro rata share of cash of real estate partnership.

(3)
 		 Excludes straight-line rent, amortization of above/below market rates and lease termination fees for both periods

(4)
 		 
Source: Claritas, as of April 2017.


Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company intends for all such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable. Such information is subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of our performance in future periods. Such forward-looking statements include statements about our earnings guidance, future liquidity, performance growth and expectations and other matters and can generally be identified by the Company’s use of forward-looking terminology, such as “may,” “will,” “plan,” “expect,” “intend,” “anticipate,” “believe,” “continue,” “goals” or similar words or phrases that are predictions of future events or trends and which do not relate solely to historical matters.

The following are additional factors that could cause the Company’s actual results and its expectations to differ materially from those described in the Company’s forward-looking statements: uncertainties related to the COVID-19 pandemic, including the unknown duration and economic, operational and financial impacts of the COVID-19 pandemic, and the actions taken or contemplated by U.S. and local governmental authorities or others in response to the pandemic on the Company’s business, employees and tenants, including, among others, (a) changes in tenant demand for the Company’s properties, (b) financial challenges confronting major tenants, including as a result of decreased customers’ willingness to frequent, and mandated stay in place orders that have prevented customers from frequenting, some of Company’s tenants’ businesses and the impact of these issues on the Company’s ability to collect rent from its tenants; (c) operational changes implemented by the Company, including remote working arrangements, which may put increased strain on IT systems and create increased vulnerability to cybersecurity incidents, (d) significant reduction in the Company’s liquidity due to a reduced borrowing base under its revolving credit facility and limited ability to access the capital markets and other sources of financing on attractive terms or at all, and (e) prolonged measures to contain the spread of COVID-19 or the fluctuating government-imposed restrictions implemented to contain the spread of COVID-19; adverse economic or real estate developments or conditions in Texas or Arizona, Houston and Phoenix in particular, including as a result of any resurgences in COVID-19 cases in such areas and the impact on our tenants’ ability to pay their rent, which could result in bad debt allowances or straight-line rent reserve adjustments; the imposition of federal income taxes if we fail to qualify as a real estate investment trust (“REIT”) in any taxable year or forego an opportunity to ensure REIT status; the Company’s ability to meet its long-term goals, including its ability to execute effectively its acquisition and disposition strategy, to continue to execute its development pipeline on schedule and at the expected costs, and its ability to grow its NOI as expected, which could be impacted by a number of factors, including, among other things, its ability to continue to renew leases or re-let space on attractive terms and to otherwise address its leasing rollover; its ability to successfully identify, finance and consummate suitable acquisitions, and the impact of such acquisitions, including financing developments, capitalization rates and internal rates of return; the Company’s ability to reduce or otherwise effectively manage its general and administrative expenses; the Company’s ability to fund from cash flows or otherwise distributions to its shareholders at current rates or at all; current adverse market and economic conditions including, but not limited to, the significant volatility and disruption in the global financial markets caused by the COVID-19 pandemic; lease terminations or lease defaults; the impact of competition on the Company’s efforts to renew existing leases; changes in the economies and other conditions of the specific markets in which the Company operates; economic, legislative and regulatory changes, including changes to laws governing REITs and the impact of the legislation commonly known as the Tax Cuts and Jobs Act; the success of the Company’s real estate strategies and investment objectives; the Company’s ability to continue to qualify as a REIT under the Internal Revenue Code of 1986, as amended; and other factors detailed in the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents the Company files with the Securities and Exchange Commission from time to time.


Non-GAAP Financial Measures

This release contains supplemental financial measures that are not calculated pursuant to U.S. generally accepted accounting principles (“GAAP”) including EBITDAre, EBITDAre-Adjusted, FFO, FFO Core, and NOI. Following are explanations and reconciliations of these metrics to their most comparable GAAP metric.

EBITDAre: The National Association of Real Estate Investment Trusts (“NAREIT”) defines EBITDAre as net income computed in accordance with GAAP, plus interest expense, income tax expense, depreciation and amortization and impairment write-downs of depreciable property and of investments in unconsolidated affiliates caused by a decrease in value of depreciable property in the affiliate, plus, or minus losses and gains on the disposition of depreciable property, including losses/gains on change in control and adjustments to reflect the entity’s share of EBITDAre of the unconsolidated affiliates and consolidated affiliates with non-controlling interests. The Company calculates EBITDAre in a manner consistent with the NAREIT definition. Management believes that EBITDAre represents a supplemental non-GAAP performance measure that provides investors with a relevant basis for comparing REITs. There can be no assurance the EBITDAre as presented by the Company is comparable to similarly titled measures of other REITs. EBITDAre should not be considered as alternatives to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.

EBITDAre-Adjusted: The Company also presents EBITDAre-Adjusted as an additional supplemental measure as we believe it is reflective of the core operating performance of our portfolio of properties. EBITDAre-Adjusted is defined as NAREIT EBITDAre excluding charges and gains related to non-cash and non-operating transactions and other events that could affect the comparability of operating results. Specific examples of items excluded from EBITDAre-Adjusted include, but are not limited to, share-based compensation and management fees, net of related costs. There can be no assurance that EBITDAre-Adjusted as presented by the Company is comparable to similarly titled measures of other REITs. EBITDAre-Adjusted should not be considered an alternative to net income or other measurements under GAAP as indicators of operating performance or to cash flows from operating, investing or financing activities as measures of liquidity. EBITDAre-Adjusted does not reflect working capital changes, cash expenditures for capital improvements or principal payments on indebtedness.

FFO: Funds From Operations: Management believes that FFO is a useful measure of the Company’s operating performance. The Company computes FFO as defined by NAREIT, which states that FFO should represent net income (loss) (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains or losses from the sale of certain real estate assets, gains and losses from change in control, and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. FFO does not represent cash flows from operating activities determined in accordance with GAAP and should not be considered an alternative to net income as an indication of the Company’s performance or to cash flow from operations as a measure of liquidity or ability to make distributions and service debt.

Management considers FFO a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, management believes that FFO provides a more meaningful and accurate indication of the Company’s performance and useful information for the investment community to compare Whitestone to other REITs since FFO is generally recognized as the industry standard for reporting the operations of REITs.

Other REITs may use different methodologies for calculating FFO, and accordingly, the Company’s FFO may not be comparable to other REITs. The Company presents FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding OP units for the periods presented.

FFO Core: Funds From Operations Core: Management believes that the computation of FFO in accordance with NAREIT’s definition includes certain non-cash and non-comparable items that affect the Company’s period-over-period performance. These items include, but are not limited to, legal settlements, debt extension costs, non-cash share-based compensation expense and rent support agreement payments received from sellers on acquired assets. In addition, the Company believes that FFO Core is a useful supplemental measure for the investing community to use in comparing the Company to other REITs as many REITs provide some form of adjusted or modified FFO. However, other REITs may use different adjustments, and the Company’s FFO Core may not be comparable to the adjusted or modified FFO of other REITs.

NOI: Net Operating Income: Management believes that NOI is a useful measure of the Company’s property operating performance. The Company defines NOI as operating revenues (rental and other revenues) less property and related expenses (property operation and maintenance and real estate taxes). Because NOI excludes general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, pro rata share of NOI of unconsolidated entities and capital expenditures and leasing costs, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating commercial real estate properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing perspective not immediately apparent from net income. The Company uses NOI to evaluate its operating performance since NOI allows the Company to evaluate the impact of factors, such as occupancy levels, lease structure, lease rates and tenant base, have on the Company’s results, margins and returns. In addition, management believes that NOI provides useful information to the investment community about the Company’s property and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of property performance in the real estate industry. However, NOI should not be viewed as a measure of the Company’s overall financial performance since it does not reflect general and administrative expenses, depreciation and amortization, involuntary conversion, interest expense, interest income, provision for income taxes, gain or loss on sale or disposition of assets, and the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company’s properties. Other REITs may use different methodologies for calculating NOI, and accordingly, the Company’s NOI may not be comparable to that of other REITs.

Same Store NOI: Management believes that Same Store NOI is a useful measure of the Company’s property operating performance because it includes only the properties that have been owned for the entire period being compared, and that it is frequently used by the investment community. Same Store NOI assists in eliminating differences in NOI due to the acquisition or disposition of properties during the period being presented, providing a more consistent measure of the Company’s performance. The Company defines Same Store NOI as operating revenues (rental and other revenues, excluding straight-line rent adjustments, amortization of above/below market rents, and lease termination fees) less property and related expenses (property operation and maintenance and real estate taxes), Non-Same Store NOI, and NOI of our investment in Pillarstone OP (pro rata). We define “Non-Same Stores” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. Other REITs may use different methodologies for calculating Same Store NOI, and accordingly, the Company’s Same Store NOI may not be comparable to that of other REITs.

Investor and Media Relations:

Rebecca Elliott,
VP of Corporate Communications
Whitestone REIT
(713) 435-2228
[email protected]

Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
     
    June 30, 2021   December 31, 2020
         
ASSETS
Real estate assets, at cost        
Property   $ 1,109,794     $ 1,106,426  
Accumulated depreciation   (176,879 )   (163,712 )
Total real estate assets   932,915     942,714  
Investment in real estate partnership   34,257     33,979  
Cash and cash equivalents   22,274     25,777  
Restricted cash   211     179  
Escrows and acquisition deposits   10,402     9,274  
Accrued rents and accounts receivable, net of allowance for doubtful accounts (1)   21,346     23,009  
Receivable due from related party   647     335  
Unamortized lease commissions, legal fees and loan costs   8,321     7,686  
Prepaid expenses and other assets(2)   3,737     2,049  
Total assets   $ 1,034,110     $ 1,045,002  
         
LIABILITIES AND EQUITY
Liabilities:        
Notes payable   $ 614,441     $ 644,185  
Accounts payable and accrued expenses(3)   40,608     50,918  
Payable due to related party   514     125  
Tenants’ security deposits   7,280     6,916  
Dividends and distributions payable   4,995     4,532  
Total liabilities   667,838     706,676  
Commitments and contingencies:   —     —  
Equity:        
Preferred shares, $0.001 par value per share; 50,000,000 shares authorized; none issued and outstanding as of June 30, 2021 and December 31, 2020   —     —  
Common shares, $0.001 par value per share; 400,000,000 shares authorized; 45,692,791 and 42,391,316 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively   45     42  
Additional paid-in capital   589,764     562,250  
Accumulated deficit   (218,842 )   (215,809 )
Accumulated other comprehensive loss   (10,966 )   (14,400 )
Total Whitestone REIT shareholders’ equity   360,001     332,083  
Noncontrolling interest in subsidiary   6,271     6,243  
Total equity   366,272     338,326  
Total liabilities and equity   $ 1,034,110     $ 1,045,002  

Whitestone REIT and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(in thousands)
     
    June 30, 2021   December 31, 2020
(1)
Accrued rents and accounts receivable, net of allowance for doubtful accounts 		       
Tenant receivables   $ 21,026     $ 22,956  
Accrued rents and other recoveries   16,435     16,348  
Allowance for doubtful accounts   (16,186 )   (16,426 )
Other receivables   71     131  
Total accrued rents and accounts receivable, net of allowance for doubtful accounts   $ 21,346     $ 23,009  
         
(2) Operating lease right of use assets (net)   $ 432     $ 592  
(3) Operating lease liabilities   $ 439     $ 603  

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
                     
    Three Months Ended   % Change From
    June 30,
2021 		  March 31,
2021 		  June 30,
2020 		  March 31,
2021 		  June 30,
2020
Revenues                    
Rental(1)   $ 30,152     $ 28,695     $ 27,052     5   %   11   %
Management, transaction, and other fees   466     350     545     33   %   (14 ) %
Total revenues   30,618     29,045     27,597     5   %   11   %
                     
Operating expenses                    
Depreciation and amortization   7,105     7,013     6,970     1   %   2   %
Operating and maintenance   5,444     4,839     4,395     13   %   24   %
Real estate taxes   4,160     4,038     4,385     3   %   (5 ) %
General and administrative   4,730     5,634     4,644     (16 ) %   2   %
Total operating expenses   21,439     21,524     20,394     —   %   5   %
                     
Other expenses (income)                    
Interest expense   6,143     6,132     6,468     —   %   (5 ) %
(Gain) loss on sale or disposal of assets, net   (224 )   (1 )   657     N.M.   (2)   N.M.    
Interest, dividend and other investment income   (23 )   (49 )   (73 )   (53 ) %   (68 ) %
Total other expense   5,896     6,082     7,052     (3 ) %   (16 ) %
                     
Income before equity investment in real estate partnership and income tax   3,283     1,439     151     128   %   2074   %
                     
Equity in earnings of real estate partnership   189     89     364     112   %   (48 ) %
Provision for income tax   (87 )   (87 )   (96 )   —   %   (9 ) %
Income from continuing operations   3,385     1,441     419     135   %   708   %
                     
Gain on sale of property from discontinued operations   1,833     —     —     N.M.   (2)   N.M.    
Income from discontinued operations   1,833     —     —     N.M.       N.M.    
                     
Net income   5,218     1,441     419     262   %   1145   %
                     
Less: Net income attributable to noncontrolling interests   92     26     9     254   %   922   %
                     
Net income attributable to Whitestone REIT   $ 5,126     $ 1,415     $ 410     262   %   1150   %

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
                     
    Three Months Ended   % Change From
    June 30,
2021 		  March 31,
2021 		  June 30,
2020 		  March 31,
2021 		  June 30,
2020
Basic Earnings Per Share:                    
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares   $ 0.08     $ 0.03     $ 0.01     167 %   700 %
Income from discontinued operations attributable to Whitestone REIT   0.04     0.00     0.00     N.M.     N.M.  
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares   $ 0.12     $ 0.03     $ 0.01     300 %   1100 %
Diluted Earnings Per Share:                    
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares   $ 0.08     $ 0.03     $ 0.01     167 %   700 %
Income from discontinued operations attributable to Whitestone REIT   0.04     0.00     0.00     N.M.     N.M.  
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares   $ 0.12     $ 0.03     $ 0.01     300 %   1100 %
                     
Weighted average number of common shares outstanding:                    
Basic   43,378     42,495     42,212     2 %   3 %
Diluted   44,125     43,331     42,763     2 %   3 %
                     
Consolidated Statements of Comprehensive Income (Loss)                    
                     
Net income   $ 5,218     $ 1,441     $ 419     262 %   1145 %
                     
Other comprehensive income (loss)                    
                     
Unrealized gain (loss) on cash flow hedging activities   1,289     2,221     (684 )   N.M.     N.M.  
                         
Comprehensive income (loss)   6,507     3,662     (265 )   N.M.     N.M.  
                     
Less: Net income attributable to noncontrolling interests   92     26     9     254 %   922 %
Less: Comprehensive income (loss) attributable to noncontrolling interests   21     41     (15 )   N.M.     N.M.  
                         
Comprehensive income (loss) attributable to Whitestone REIT   $ 6,394     $ 3,595     $ (259 )   N.M.     N.M.  

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
                     
    Three Months Ended   % Change From
    June 30,
2021 		  March 31,
2021 		  June 30,
2020 		  March 31,
2021 		  June 30,
2020

(1)

Rental 		                   
Rental revenues   $ 22,238     $ 21,626     $ 21,706     3 %   2 %
Recoveries   8,057     7,598     7,674     6 %   5 %
Bad debt   (143 )   (529 )   (2,328 )   73 %   94 %
Total rental   $ 30,152     $ 28,695     $ 27,052     5 %   11 %
                     

(2) Not Meaningful

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
             
    Six Months Ended
June 30, 		  % Change From
June 30,
    2021   2020   2020
Revenues            
Rental(1)   $ 58,847     $ 57,248     3   %
Management, transaction, and other fees   816     933     (13 ) %
Total revenues   59,663     58,181     3   %
             
Operating expenses            
Depreciation and amortization   14,118     13,941     1   %
Operating and maintenance   10,283     9,992     3   %
Real estate taxes   8,198     8,921     (8 ) %
General and administrative   10,364     9,744     6   %
Total operating expenses   42,963     42,598     1   %
             
Other expenses (income)            
Interest expense   12,275     13,161     (7 ) %
(Gain) loss on sale or disposal of assets, net   (225 )   864     (126 ) %
Interest, dividend and other investment income   (72 )   (135 )   (47 ) %
Total other expense   11,978     13,890     (14 ) %
             
Income before equity investment in real estate partnership and income tax   4,722     1,693     179   %
             
Equity in earnings of real estate partnership   278     556     (50 ) %
Provision for income tax   (174 )   (183 )   (5 ) %
Income from continuing operations   4,826     2,066     134   %
             
Gain on sale of property from discontinued operations   1,833     —     N.M.    
Income from discontinued operations   1,833     —     N.M.    
             
Net income   6,659     2,066     222   %
             
Less: Net income attributable to noncontrolling interests   118     44     168   %
             
Net income attributable to Whitestone REIT   $ 6,541     $ 2,022     223   %

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
         
    Six Months Ended
June 30, 		  % Change From
June 30,
    2021   2020   2020
Basic Earnings Per Share:            
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares   $ 0.11     $ 0.05     120 %
Income from discontinued operations attributable to Whitestone REIT   0.04     0.00     N.M.  
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares   $ 0.15     $ 0.05     200 %
Diluted Earnings Per Share:            
Net income from continuing operations attributable to Whitestone REIT excluding amounts attributable to unvested restricted shares   $ 0.11     $ 0.05     120 %
Income from discontinued operations attributable to Whitestone REIT   0.04     0.00     N.M.  
Net income attributable to common shareholders, excluding amounts attributable to unvested restricted shares   $ 0.15     $ 0.05     200 %
             
Weighted average number of common shares outstanding:            
Basic   42,939     42,130     2 %
Diluted   43,730     42,734     2 %
             
Consolidated Statements of Comprehensive Income (Loss)            
             
Net income   $ 6,659     $ 2,066     222 %
             
Other comprehensive income (loss)            
             
Unrealized gain (loss) on cash flow hedging activities   3,510     (11,636 )   N.M.  
               
Comprehensive income (loss)   10,169     (9,570 )   N.M.  
               
Less: Net income attributable to noncontrolling interests   118     44     168 %
Less: Comprehensive income (loss) attributable to noncontrolling interests   62     (246 )   N.M.  
               
Comprehensive income (loss) attributable to Whitestone REIT   $ 9,989     $ (9,368 )   N.M.  

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands)
             
    Six Months Ended June 30,   % Change From June 30,
    2021   2020   2020
(1) Rental            
Rental revenues   $ 43,864     $ 43,783     —   %
Recoveries   15,655     16,637     (6 ) %
Bad debt   (672 )   (3,172 )   79   %
Total rental   $ 58,847     $ 57,248     3   %

Whitestone REIT and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)
         
    Six Months Ended June 30,
    2021   2020
Cash flows from operating activities:        
Net income from continuing operations   $ 4,826     $ 2,066  
Net income from discontinued operations   1,833     —  
Net income   6,659     2,066  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization   14,118     13,941  
Amortization of deferred loan costs   548     562  
(Gain) loss on sale or disposal of assets and loan forgiveness, net   (225 )   864  
Bad debt   672     3,172  
Share-based compensation   2,575     2,388  
Equity in earnings of real estate partnership   (278 )   (556 )
Changes in operating assets and liabilities:        
Escrows and acquisition deposits   (1,128 )   1,448  
Accrued rents and accounts receivable   991     (4,994 )
Receivable due from related party   (312 )   (592 )
Unamortized lease commissions, legal fees and loan costs   (1,852 )   (461 )
Prepaid expenses and other assets   201     1,263  
Accounts payable and accrued expenses   (6,800 )   (5,843 )
Payable due to related party   389     398  
Tenants’ security deposits   364     264  
Net cash provided by operating activities   14,089     13,920  
Cash flows from investing activities:        
Additions to real estate   (3,499 )   (3,053 )
Net cash used in investing activities   (3,499 )   (3,053 )
Net cash provided by investing activities of discontinued operations   1,833     —  
Cash flows from financing activities:        
Distributions paid to common shareholders   (9,082 )   (16,341 )
Distributions paid to OP unit holders   (165 )   (349 )
Proceeds from issuance of common shares, net of offering costs   25,371     2,241  
Payments of exchange offer costs   (31 )   (43 )
Proceeds from notes payable   —     1,734  
Net proceeds from (payments of) credit facility   (30,000 )   30,000  
Repayments of notes payable   (1,559 )   (1,603 )
Repurchase of common shares   (428 )   (2,070 )
Net cash provided by (used in) financing activities   (15,894 )   13,569  
Net increase (decrease) in cash, cash equivalents and restricted cash   (3,471 )   24,436  
Cash, cash equivalents and restricted cash at beginning of period   25,956     15,643  
Cash, cash equivalents and restricted cash at end of period (1)   $ 22,485     $ 40,079  

(1) For a reconciliation of cash, cash equivalents and restricted cash, see supplemental disclosures below.

Whitestone REIT and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
Supplemental Disclosures
(in thousands)
         
    Six Months Ended June 30,
    2021   2020
Supplemental disclosure of cash flow information:        
Cash paid for interest   $ 11,829      $ 12,626     
Cash paid for taxes   $ 364      $ —     
Non cash investing and financing activities:        
Disposal of fully depreciated real estate   $ 3      $ 24     
Financed insurance premiums   $ 1,712      $ 1,431     
Value of shares issued under dividend reinvestment plan   $ 30      $ 58     
Value of common shares exchanged for OP units   $ —      $ 1,127     
Change in fair value of cash flow hedge   $ 3,510      $ (11,636 )  

    June 30,
    2021   2020
Cash, cash equivalents and restricted cash        
Cash and cash equivalents   $ 22,274      $ 39,924   
Restricted cash   211      155   
Total cash, cash equivalents and restricted cash   $ 22,485      $ 40,079   

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
                     
    Three Months Ended Change From
    June 30,
2021 		  March 31,
2021 		  June 30,
2020 		  March 31,
2021 		  June 30, 2020
FFO (NAREIT) AND FFO CORE                    
Net income attributable to Whitestone REIT   $ 5,126        $ 1,415        $ 410      262    %   1150    %
Adjustments to reconcile to FFO:                    
Depreciation and amortization of real estate assets   7,068        6,980        6,909      1    %   2    %
Depreciation and amortization of real estate assets of real estate partnership (pro rata)   409        405        427      1    %   (4 ) %
(Gain) loss on sale or disposal of assets, net   (224 )     (1 )     657      (22300 ) %   (134 ) %
Loss (gain) on sale of property from discontinued operations   (1,833 )     —        —      N.M.       N.M.    
(Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata)   (20 )     —        1      N.M.       N.M.    
Net income attributable to noncontrolling interests   92        26        9      254    %   922    %
FFO (NAREIT)   10,618        8,825        8,413      20    %   26    %
Adjustments to reconcile to FFO Core:                    
Share-based compensation expense   1,244        1,468        1,196      (15 ) %   4    %
FFO Core   $ 11,862        $ 10,293        $ 9,609      15    %   23    %
                     
FFO PER SHARE AND OP UNIT CALCULATION                    
Numerator:                    
FFO   $ 10,618        $ 8,825        $ 8,413      20    %   26    %
Distributions paid on unvested restricted common shares   —        —        —      N.M.       N.M.    
FFO excluding amounts attributable to unvested restricted common shares   $ 10,618        $ 8,825        $ 8,413      20    %   26    %
FFO Core excluding amounts attributable to unvested restricted common shares   $ 11,862        $ 10,293        $ 9,609      15    %   23    %
Denominator:                    
Weighted average number of total common shares – basic   43,378        42,495        42,212      2    %   3    %
Weighted average number of total noncontrolling OP units – basic   773        773        828      —    %   (7 ) %
Weighted average number of total common shares and noncontrolling OP units – basic   44,151        43,268        43,040      2    %   3    %
                     
Effect of dilutive securities:                    
Unvested restricted shares   747        836        551      (11 ) %   36    %
Weighted average number of total common shares and noncontrolling OP units – diluted   44,898        44,104        43,591      2    %   3    %
                     
FFO per common share and OP unit – basic   $ 0.24        $ 0.20        $ 0.20      20    %   20    %
FFO per common share and OP unit – diluted   $ 0.24        $ 0.20        $ 0.19      20    %   26    %
                     
FFO Core per common share and OP unit – basic   $ 0.27        $ 0.24        $ 0.22      13    %   23    %
FFO Core per common share and OP unit – diluted   $ 0.26        $ 0.23        $ 0.22      13    %   18    %

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(in thousands, except per share and per unit data)
             
         
    Six Months Ended June
30, 		  % Change
From June 30,
    2021   2020   2020
FFO (NAREIT) AND FFO CORE            
Net income attributable to Whitestone REIT   $ 6,541        $ 2,022      223    %
Adjustments to reconcile to FFO:            
Depreciation and amortization of real estate assets   14,048        13,818      2    %
Depreciation and amortization of real estate assets of real estate partnership (pro rata)   814        876      (7 ) %
(Gain) loss on sale or disposal of assets, net   (225 )     864      (126 ) %
Gain on sale of property from discontinued operations   (1,833 )     —      N.M.    
(Gain) loss on sale or disposal of properties or assets of real estate partnership (pro rata)   (20 )     54      (137 ) %
Net income attributable to noncontrolling interests   118        44      168    %
FFO (NAREIT)   19,443        17,678      10    %
Adjustments to reconcile to FFO Core:            
Share-based compensation expense   2,712        2,522      8    %
FFO Core   $ 22,155        $ 20,200      10    %
             
FFO PER SHARE AND OP UNIT CALCULATION            
Numerator:            
FFO   $ 19,443        $ 17,678      10    %
Distributions paid on unvested restricted common shares   —        —      N.M.
FFO excluding amounts attributable to unvested restricted common shares   $ 19,443        $ 17,678      10    %
FFO Core excluding amounts attributable to unvested restricted common shares   $ 22,155        $ 20,200      10    %
Denominator:            
Weighted average number of total common shares – basic   42,939        42,130      2    %
Weighted average number of total noncontrolling OP units – basic   773        866      (11 ) %
Weighted average number of total common shares and noncontrolling OP units – basic   43,712        42,996      2    %
             
Effect of dilutive securities:            
Unvested restricted shares   791        604      31    %
Weighted average number of total common shares and noncontrolling OP units – diluted   44,503        43,600      2    %
             
FFO per common share and OP unit – basic   $ 0.44        $ 0.41      7    %
FFO per common share and OP unit – diluted   $ 0.44        $ 0.41      7    %
             
FFO Core per common share and OP unit – basic   $ 0.51        $ 0.47      9    %
FFO Core per common share and OP unit – diluted   $ 0.50        $ 0.46      9    %

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
                 
    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2021   2020   2021   2020
PROPERTY NET OPERATING INCOME                
Net income attributable to Whitestone REIT   $ 5,126      $ 410      $ 6,541      $ 2,022   
General and administrative expenses   4,730      4,644      10,364      9,744   
Depreciation and amortization   7,105      6,970      14,118      13,941   
Equity in earnings of real estate partnership   (189 )   (364 )   (278 )   (556 )
Interest expense   6,143      6,468      12,275      13,161   
Interest, dividend and other investment income   (23 )   (73 )   (72 )   (135 )
Provision for income taxes   87      96      174      183   
Gain on sale of property from discontinued operations   (1,833 )   —      (1,833 )   —   
Management fee, net of related expenses   83      56      163      165   
(Gain) loss on sale or disposal of assets, net   (224 )   657      (225 )   864   
NOI of real estate partnership (pro rata)   952      1,164      1,843      2,260   
Net income attributable to noncontrolling interests   92      9      118      44   
NOI   22,049      20,037      43,188      41,693   
Non-Same Store NOI (1)   —      —      —      —   
NOI of real estate partnership (pro rata)   (952 )   (1,164 )   (1,843 )   (2,260 )
NOI less Non-Same Store NOI and NOI of real estate partnership (pro rata)   21,097      18,873      41,345      39,433   
Same Store straight-line rent adjustments   (484 )   285      (694 )   619   
Same Store amortization of above/below market rents   (240 )   (226 )   (441 )   (434 )
Same Store lease termination fees   (150 )   (271 )   (227 )   (301 )
Same Store NOI

(2)
 		  $ 20,223      $ 18,661      $ 39,983      $ 39,317   

(1) We define “Non-Same Store” as properties that have been acquired since the beginning of the period being compared and properties that have been sold, but not classified as discontinued operations. For purposes of comparing the three months ended June 30, 2021 to the three months ended June 30, 2020, Non-Same Store includes properties acquired between April 1, 2020 and June 30, 2021 and properties sold between April 1, 2020 and June 30, 2021, but not included in discontinued operations. For purposes of comparing the six months ended June 30, 2021 to the six months ended June 30, 2020, Non-Same Store includes properties acquired between January 1, 2020 and June 30, 2021 and properties sold between January 1, 2020 and June 30, 2021, but not included in discontinued operations.
(2) We define “Same Store” as properties that have been owned during the entire period being compared. For purposes of comparing the three months ended June 30, 2021 to the three months ended June 30, 2020, Same Store includes properties owned before April 1, 2020 and not sold before June 30, 2021. For purposes of comparing the six months ended June 30, 2021 to the six months ended June 30, 2020, Same Store includes properties owned before January 1, 2020 and not sold before June 30, 2021.

Whitestone REIT and Subsidiaries
RECONCILIATION OF NON-GAAP MEASURES
(continued)
(in thousands)
         
    Three Months Ended   % Change From
    June 30, 2021   March 31, 2021   June 30, 2020   March 31, 2021   June 30, 2020
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)
                     
Net income attributable to Whitestone REIT   $ 5,126      $ 1,415      $ 410      262    %   1150    %
Depreciation and amortization   7,105      7,013      6,970      1    %   2    %
Interest expense   6,143      6,132      6,468      —    %   (5 ) %
Provision for income taxes   87      87      96      —    %   (9 ) %
Net income attributable to noncontrolling interests   92      26      9      254    %   922    %
Equity in earnings of real estate partnership   (189 )   (89 )   (364 )   112    %   (48 ) %
EBITDAre adjustments for real estate partnership   766      685      999      12    %   (23 ) %
Gain on sale of property from discontinued operations   (1,833 )   —      —      N.M.       N.M.    
(Gain) loss on sale or disposal of assets, net   (224 )   (1 )   657      (22300 ) %   (134 ) %
EBITDAre   17,073      15,268      15,245      12    %   12    %
Management fee, net of related expenses   83      80      56      4    %   48    %
Share-based compensation expense   1,244      1,468      1,196      (15 ) %   4    %
EBITDAre-Adjusted   $ 18,400      $ 16,816      $ 16,497      9    %   12    %

    Six Months Ended June 30,   % Change From June 30,
    2021   2020   2020
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre)
             
Net income attributable to Whitestone REIT   $ 6,541      $ 2,022      223    %
Depreciation and amortization   14,118      13,941      1    %
Interest expense   12,275      13,161      (7 ) %
Provision for income taxes   174      183      (5 ) %
Net income attributable to noncontrolling interests   118      44      168    %
Equity in earnings of real estate partnership   (278 )   (556 )   (50 ) %
EBITDAre adjustments for real estate partnership   1,451      1,886      (23 ) %
Gain on sale of property from discontinued operations   (1,833 )   —       
(Gain) loss on sale or disposal of assets, net   (225 )   864      (126 ) %
EBITDAre   32,341      31,545      3    %
Management fee, net of related expenses   163      165      (1 ) %
Share-based compensation expense   2,712      2,522      8    %
EBITDAre-Adjusted   $ 35,216      $ 34,232      3    %



Posted on

Assurant Reports Second Quarter 2021 Financial Results

Assurant Reports Second Quarter 2021 Financial Results

Performance Driven by Sustained Momentum in Global Lifestyle and Global Housing

Continue to Expect to Grow EPS, Ex. Catastrophes, by 10 to 14 Percent for 2021

NEW YORK–(BUSINESS WIRE)–Assurant, Inc. (NYSE: AIZ), a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases, today reported results for the second quarter ended June 30, 2021.

“Our second quarter performance demonstrated continued momentum and strong embedded growth across our Global Lifestyle and Global Housing businesses,” said Assurant Chief Executive Officer Alan Colberg. “The closing of the Global Preneed sale to CUNA Mutual Group represents another major milestone in our transformation. Looking ahead, we are well-positioned to deliver on our financial objectives for 2021 and remain focused on driving innovation and profitable growth across our market-leading lifestyle and specialty P&C businesses.”

(Unaudited)

$ in millions, except where noted

 

Q2’21

 

Q2’20

 

Change

GAAP net income

 

184.7

 

164.7

 

12

%

GAAP net income per diluted share

 

3.01

 

2.59

 

16

%

Net operating income1

 

183.2

 

153.7

 

19

%

Net operating income per diluted share2

 

2.99

 

2.50

 

20

%

Net operating income, ex. reportable catastrophes3

 

183.6

 

163.7

 

12

%

Net operating income, ex. reportable catastrophes, per diluted share4

 

2.99

 

2.66

 

12

%

Adjusted EBITDA, ex. reportable catastrophes5

 

297.6

 

270.2

 

10

%

Second Quarter 2021 Summary:

  • Net income increased 12 percent versus prior year period, while net income per diluted share increased 16 percent
  • Net operating income, excluding reportable catastrophes3, up 12 percent to $183.6 million
  • Net operating income, excluding reportable catastrophes, per diluted share4, up 12 percent to $2.99
  • Adjusted EBITDA, excluding reportable catastrophes5, up 10 percent to $297.6 million
  • Holding company liquidity was $353 million
  • Share repurchases and common stock dividends totaled $233 million; since 2019, returned nearly $1.2 billion of $1.35 billion three-year capital return objective
  • Reaffirmed 2021 outlook of 10 to 14 percent growth in net operating income, excluding reportable catastrophes, per diluted share6

Note: References to net income and net income per diluted share throughout this press release refer to net income from continuing operations. Metrics listed above other than net income and net income per diluted share are non-GAAP measures of performance. A full reconciliation of each non-GAAP measure to the most comparable GAAP measure can be found in the Non-GAAP Financial Measures section beginning on page 8.

Second Quarter 2021 Consolidated Results

(Unaudited)

$ in millions

Q2’21

Q2’20

Change

 

6M’21

6M’20

Change

GAAP net income

184.7

 

164.7

 

12

%

 

333.2

 

313.3

 

6

%

GAAP Corporate and Other segment net loss

(32.8

)

(42.5

)

23

%

 

(80.8

)

(89.0

)

9

%

Net operating income

 

 

 

 

 

 

 

Global Lifestyle7

123.8

 

121.8

 

2

%

 

252.9

 

242.7

 

4

%

Global Housing7

93.7

 

85.4

 

10

%

 

161.1

 

159.6

 

1

%

Corporate and Other8

(11.5

)

(28.8

)

60

%

 

(33.1

)

(50.6

)

35

%

Interest expense

(22.8

)

(20.1

)

(13

)%

 

(45.2

)

(40.2

)

(12

)%

Preferred stock dividends

–

 

(4.6

)

100

%

 

(4.7

)

(9.3

)

49

%

Net operating income1

183.2

 

153.7

 

19

%

 

331.0

 

302.2

 

10

%

Reportable catastrophes

(0.4

)

(10.0

)

 

 

(34.9

)

(22.9

)

 

Net operating income, ex. reportable catastrophes3

183.6

 

163.7

 

12

%

 

365.9

 

325.1

 

13

%

Adjusted EBITDA, ex. reportable catastrophes

 

 

 

 

 

 

 

Global Lifestyle5

186.0

 

175.2

 

6

%

 

379.0

 

349.2

 

9

%

Global Housing5

128.5

 

128.8

 

0

%

 

265.6

 

246.1

 

8

%

Corporate and Other5

(16.9

)

(33.8

)

50

%

 

(44.8

)

(61.1

)

27

%

Adjusted EBITDA, ex. reportable catastrophes5

297.6

 

270.2

 

10

%

 

599.8

 

534.2

 

12

%

Note: Some of the metrics above are non-GAAP measures of performance. A full reconciliation of each non-GAAP measure to the most comparable GAAP measure can be found in the Non-GAAP Financial Measures section beginning on page 8. Additional details regarding key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
  • Net income was $184.7 million, or $3.01 per diluted share, compared to second quarter 2020 net income of $164.7 million, or $2.59 per diluted share. The increase was primarily driven by a lower Corporate and Other net operating loss and a decline in COVID-19 direct and incremental expenses. This was partially offset by lower net realized gains on investments compared to the prior year period.

    Net operating income1 totaled $183.2 million, or $2.99 per diluted share2, compared to second quarter 2020 net operating income of $153.7 million, or $2.50 per diluted share. Assurant incurred $0.4 million of reportable catastrophes in second quarter 2021, compared to $10.0 million in second quarter 2020. Excluding reportable catastrophes, net operating income3 for second quarter 2021 increased 12 percent to $183.6 million, compared to $163.7 million in the prior year period, which was mainly the result of a lower Corporate and Other net operating loss. Results in Global Lifestyle and Global Housing were largely unchanged from the strong second quarter 2020 performance. Underlying growth and $14.4 million in additional investment income, primarily from a $9.7 million increase from a real estate joint venture partnership sale, were offset by more normalized loss experience across several product lines in comparison to the prior year period which included impacts from COVID-19.

  • Adjusted EBITDA, excluding reportable catastrophes5,increased 10 percent compared to the prior year period. This is less than the increase in net operating income, excluding reportable catastrophes, primarily due to certain income tax benefits which are excluded from Adjusted EBITDA.
  • Revenue from the Global Lifestyle and Global Housing segments totaled $2.45 billion compared to $2.26 billion in second quarter 2020, primarily due to growth in Global Automotive and Connected Living within Global Lifestyle.

Note: Throughout this press release, revenue refers to net earned premiums, fees and other income. GAAP revenue is equal to net earned premiums, fees and other income, net investment income, net realized gains (losses) on investments and amortization of deferred gains and gains on disposal of businesses.

Reportable Segments

Global Lifestyle

$ in millions

 

Q2’21

Q2’20

Change

6M’21

6M’20

Change

Net operating income7

 

123.8

121.8

2

%

252.9

242.7

4

%

Adjusted EBITDA5

 

186.0

175.2

6

%

379.0

349.2

9

%

Revenue

 

1,937.8

1,768.7

10

%

3,800.1

3,715.6

2

%

Note: References to Adjusted EBITDA within Global Lifestyle exclude reportable catastrophes.

  • Net operating income7 increased in second quarter 2021 compared to the prior year period, primarily led by Global Automotive organic growth and higher investment income, including a $3.9 million increase from the sale of a real estate joint venture partnership, as well as improved claims experience within Global Financial Services. This was partially offset by a year-over-year decline in Connected Living, largely from lower international results in both extended service contracts and, to a lesser extent, the mobile business. Claims activity increased compared to lower than average levels in the prior year period, mainly in key regions such as Europe and Latin America. The mobile business benefitted from subscriber growth across North America and Asia Pacific and strong trade-in performance, including HYLA Mobile contributions.
  • Adjusted EBITDA5 increased compared to second quarter 2020, greater than the increase in net operating income, which reflects higher amortization of purchased asset intangibles from mobile and auto-related acquisitions and an increase in depreciation expense related to major information technology initiatives.
  • Revenue increased compared to the prior year period, primarily due to growth in Global Automotive from strong sales across the U.S. and contributions from recent acquisitions, as well as further expansion in Connected Living, including an increase in extended service contracts and higher fee income from mobile trade-in.

Global Housing

$ in millions

 

Q2’21

Q2’20

Change

6M’21

6M’20

Change

Net operating income7

 

93.7

85.4

10

%

161.1

159.6

1

%

Reportable catastrophes

 

0.4

10.1

 

34.9

22.9

 

Net operating income, ex. reportable catastrophes

 

94.1

95.5

(1

)%

196.0

182.5

7

%

Revenue

 

511.1

488.9

5

%

1,004.1

989.3

1

%

  • Net operating income7 increased in second quarter 2021 compared to the prior year period. Second quarter 2021 included $0.4 million of reportable catastrophes, compared to $10.1 million of reportable catastrophes in the second quarter 2020.

    Excluding reportable catastrophes, net operating income was roughly flat. Growth in lender-placed and higher investment income, including a $3.9 million increase from the sale of a real estate joint venture partnership, were offset by an expected increase in non-catastrophe loss experience to more normalized levels across all lines of business as well as an increase in reserves related to the cost of settling run-off claims within small commercial.

  • Revenue increased in second quarter 2021, primarily due to growth in Multifamily Housing and lender-placed from higher premium rates and average insured values, partially offset by the continued impact of lower real estate owned volumes.

Corporate and Other

$ in millions

 

Q2’21

Q2’20

Change

6M’21

6M’20

Change

GAAP segment net loss

 

(32.8

)

(42.5

)

23

%

(80.8

)

(89.0

)

9

%

Net operating loss8

 

(11.5

)

(28.8

)

60

%

(33.1

)

(50.6

)

35

%

  • Segment net loss decreased in second quarter 2021 compared to the prior year period due to the same drivers noted earlier for net income.
  • Net operating loss8 decreased in second quarter 2021 compared to the prior year period, primarily driven by lower employee-related expenses and third-party fees due to delayed timing of spending and $6.4 million of favorable one-time items, including a $3.0 million net tax benefit and $1.1 million of higher investment income from the sale of a real estate joint venture partnership.

Holding Company Liquidity Position

  • Holding company liquidity totaled $353 million as of June 30, 2021, or $128 million above the company’s current targeted minimum level of $225 million. This excludes the net proceeds from the second quarter 2021 debt offering which were used as part of the July redemption of Senior Notes due 2023. In addition, the $1.2 billion in net proceeds from the sale of the Global Preneed business are not included as the sale closed in the third quarter.

    Dividends paid by operating segments to the holding company in second quarter 2021 totaled $243 million. In addition to quarterly interest and Corporate and Other expenses, the company had $17 million of cash outflows primarily related to mobile acquisitions, including Olivar, and investments within Assurant Ventures.

  • Share repurchases and common stock dividends totaled $233 million in second quarter 2021. During second quarter 2021, Assurant repurchased 1.2 million shares of common stock for $191 million and paid $42 million in common stock dividends. From July 1 through July 30, 2021, the company repurchased an additional 737 thousand shares for approximately $115 million, with $1.3 billion remaining under the current repurchase authorizations.
  • On August 2, 2021, the company closed the sale of its Global Preneed business and related legal entities and assets to subsidiaries of CUNA Mutual Group for approximately $1.35 billion in cash. Approximately $900 million of the $1.2 billion net proceeds are expected to be returned within one year of closing through share repurchases, with the remainder to be invested primarily in Assurant’s Connected Living, Global Automotive and Multifamily Housing businesses.

2021 Company Outlook6

$ in millions, unless otherwise noted

 

FY’20

6M’21

  

2021 Outlook6

Net operating income, ex. reportable catastrophes, per diluted share

 

9.88

 

6.02

 

 

10-14% growth

Net operating income, ex. reportable catastrophes

 

605.4

 

365.9

 

 

High single-digit growth

Global Lifestyle

 

437.2

 

252.9

 

 

High single-digit growth

Global Housing, ex. reportable catastrophes

 

371.0

 

196.0

 

 

Flat with 2020

Corporate and Other

 

(102.9

)

(33.1

)

 

~ (85.0)

Interest expense

 

(81.2

)

(45.2

)

 

~ (90.0)

 

 

 

 

 

 

Adjusted EBITDA, ex. reportable catastrophes

 

1,013.4

 

599.8

 

 

Similar growth rate to

NOI, ex. reportable

catastrophes

Note: Some of the metrics above are non-GAAP measures of performance. A full reconciliation of each non-GAAP measure to the most comparable GAAP measure can be found in the Non-GAAP Financial Measures section beginning on page 8. Additional details regarding key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

For full-year 2021, the company expects:

Assurant net operating income, excluding reportable catastrophes, per diluted share6, to increase approximately 10 to 14 percent from $9.88 in 2020.

Results for 2021 are expected to be driven primarily by growth within Global Lifestyle and a lower Corporate and Other loss, as well as share repurchases, including the completion of the company’s three-year capital return objective and initial deployment of proceeds from the sale of Global Preneed.

  • Growth in net operating income, excluding reportable catastrophes6, is expected to be mainly driven by high single-digit growth in Global Lifestyle6, with expansion across all lines of business, as well as a lower Corporate and Other loss. Global Housing net operating income, excluding reportable catastrophes6, is now expected to be roughly flat versus the prior year, as underlying growth is offset by lower REO volumes and an increase in non-catastrophe losses to more normalized levels.

    Adjusted EBITDA, excluding reportable catastrophes6, is now expected to grow at a similar rate to net operating income, excluding reportable catastrophes, with double-digit Adjusted EBITDA growth in Global Lifestyle.

    Net operating income, excluding reportable catastrophes, is expected to be lower in the second half of 2021 compared to the first half of 2021, mainly due to increased investments to support long-term growth in our connected world businesses, lower investment income and increased Corporate and Other expenses due to timing of spending.

  • Business segment dividends from Global Lifestyle and Global Housing to approximate segment net operating income, including reportable catastrophes. This is subject to the growth of the businesses, rating agency and regulatory capital requirements, investment portfolio performance and a potential increase in U.S. corporate tax rates.
  • Capital to be deployed to support business growth, fund investments and return capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions.

Earnings Conference Call

The second quarter 2021 earnings conference call and webcast will be held Wednesday, August 4, 2021 at 8:00 a.m. ET. The live and archived webcast, along with supplemental information, will be available on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

About Assurant

Assurant, Inc. (NYSE: AIZ) is a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world’s leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 500 company with a presence in 21 countries, Assurant offers mobile device solutions; extended service contracts; vehicle protection services; renters insurance; lender-placed insurance products; and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion and prepare leaders of the future.

Learn more at assurant.com or on Twitter @AssurantNews.

Safe Harbor Statement

Some of the statements included in this news release and its exhibits, including our financial plans and any statements regarding the company’s anticipated future financial performance, business prospects, growth and operating strategies and similar matters, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.

You can identify forward-looking statements by the use of words such as “outlook,” “will,” “may,” “can,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,” “approximately,” and the negative version of those words and other words and terms with a similar meaning. Any forward-looking statements contained in this news release or its exhibits are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management, including those projected in the company outlook:

(i)

the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues;

 

(ii)

significant competitive pressures, changes in customer preferences and disruption;

 

(iii)

the failure to implement our strategy and to attract and retain key personnel, including key executives and senior management;

(iv)

the failure to find suitable acquisitions at attractive prices, integrate acquired businesses effectively or grow organically;

(v)

our inability to recover should we experience a business continuity event;

(vi)

the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;

(vii)

risks related to our international operations;

(viii)

declines in the value of mobile devices, the risk of guaranteed buybacks, or export compliance or other risks in our mobile business;

(ix)

our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;

(x)

risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;

(xi)

negative publicity relating to our business or industry;

(xii)

the impact of general economic, financial market and political conditions and conditions in the markets in which we operate;

(xiii)

the impact of the COVID-19 pandemic and measures taken in response thereto;

(xiv)

the impact of catastrophic and non-catastrophe losses, including as a result of climate change;

(xv)

the adequacy of reserves established for claims and our inability to accurately predict and price for claims;

(xvi)

a decline in financial strength ratings of our insurance subsidiaries or in our corporate senior debt ratings;

(xvii)

fluctuations in exchange rates;

(xviii)

an impairment of goodwill or other intangible assets;

(xix)

the failure to maintain effective internal control over financial reporting;

(xx)

unfavorable conditions in the capital and credit markets;

(xxi)

a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, and changes in interest rates;

(xxii)

impairment of our deferred tax assets;

(xxiii)

the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;

(xxiv)

the credit risk of some of our agents, third-party administrators and clients;

(xxv)

the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends or repurchase shares;

(xxvi)

the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses;

(xxvii)

breaches of our information systems or those of third parties with whom we do business, or the failure to protect the security of data in such systems, including due to cyber-attacks and as a result of working remotely;

(xxviii)

the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security, data protection or tax;

(xxix)

the impact of litigation and regulatory actions;

(xxx)

reductions or deferrals in the insurance premiums we charge;

(xxxi)

changes in insurance, tax and other regulation;

(xxxii)

volatility in our common stock price and trading volume; and

(xxxiii)

employee misconduct.

For additional information on factors that could affect our actual results, please refer to the factors identified in the reports we file with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to the risk factors identified in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, each as filed with the SEC.

Non-GAAP Financial Measures

Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance for the periods presented in this news release. Assurant’s non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant’s non-GAAP financial measures to those of other companies.

(1)   

Assurant uses net operating income as an important measure of the company’s operating performance. Net operating income equals GAAP net income from continuing operations, excluding net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the CARES Act tax benefit, net income (loss) attributable to non-controlling interests, as well as other highly variable or unusual items other than reportable catastrophes. It also excludes restructuring costs related to strategic exit activities as these are highly unusual, transformative actions associated with realigning resources to the company’s business strategies, outside of normal periodic restructuring and cost management activities. The company believes net operating income provides investors with a valuable measure of the performance of the company’s ongoing business because the excluded items do not represent the ongoing operations of the company. The comparable GAAP measure is net income from continuing operations.

 
(UNAUDITED) 2Q 2Q 6 Months 6 Months
($ in millions)

2021

2020

2021

2020
GAAP net income from continuing operations

$

184.7

 

$

164.7

 

$

333.2

 

$

313.3

 

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

(10.3

)

 

(28.9

)

 

(11.2

)

 

56.1

 

COVID-19 direct and incremental expenses

 

2.2

 

 

18.9

 

 

5.2

 

 

21.9

 

CARES Act tax benefit (after-tax)

 

–

 

 

(5.1

)

 

–

 

 

(84.4

)

Other adjustments(1)

 

6.1

 

 

7.6

 

 

8.0

 

 

20.5

 

Provision (benefit) for income taxes

 

0.7

 

 

1.4

 

 

0.5

 

 

(14.5

)

Net income attributable to non-controlling interests

 

(0.2

)

 

(0.3

)

 

–

 

 

(1.4

)

Preferred stock dividends

 

–

 

 

(4.6

)

 

(4.7

)

 

(9.3

)

Net operating income

$

183.2

 

$

153.7

 

$

331.0

 

$

302.2

 

(1) 

 

Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
(2)   

Assurant uses net operating income per diluted share as an important measure of the company’s stockholder value. Net operating income per diluted share equals net operating income (defined above) plus any dilutive preferred stock dividends divided by the weighted average number of diluted shares outstanding. The company believes this metric provides investors with a valuable measure of stockholder value because it excludes items that do not represent the ongoing operations of the company. The comparable GAAP measure is net income from continuing operations per diluted share, defined as net income from continuing operations plus any dilutive preferred stock dividends less net income from non-controlling interests divided by the weighted average number of diluted shares outstanding.

 
(UNAUDITED) 2Q 2Q 6 Months 6 Months

2021

2020

2021

2020
GAAP net income from continuing operations per diluted share(1)

$

3.01

 

$

2.59

 

$

5.41

 

$

4.90

 

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

(0.17

)

 

(0.46

)

 

(0.18

)

 

0.90

 

COVID-19 direct and incremental expenses

 

0.04

 

 

0.30

 

 

0.09

 

 

0.35

 

CARES Act tax benefit (after-tax)

 

–

 

 

(0.08

)

 

–

 

 

(1.33

)

Other adjustments(2)

 

0.10

 

 

0.13

 

 

0.12

 

 

0.32

 

Provision (benefit) for income taxes

 

0.01

 

 

0.02

 

 

0.01

 

 

(0.23

)

Net operating income per diluted share(1)

$

2.99

 

$

2.50

 

$

5.45

 

$

4.91

 

(1)   

Information on the share counts used in the per share calculations are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
(2)   

Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
(3)   

Assurant uses net operating income (defined above), excluding reportable catastrophes (which represents individual catastrophic events that generate losses in excess of $5.0 million, pre-tax, net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums), as another important measure of the company’s operating performance. The company believes this metric provides investors with a valuable measure of the performance of the company’s ongoing business because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income from continuing operations.

 
(UNAUDITED) 2Q 2Q 6 Months 6 Months
($ in millions)

2021

2020

2021

2020
GAAP net income from continuing operations

$

184.7

 

$

164.7

 

$

333.2

 

$

313.3

 

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

(10.3

)

 

(28.9

)

 

(11.2

)

 

56.1

 

Reportable catastrophes

 

0.5

 

 

12.6

 

 

44.1

 

 

28.9

 

COVID-19 direct and incremental expenses

 

2.2

 

 

18.9

 

 

5.2

 

 

21.9

 

CARES Act tax benefit (after-tax)

 

–

 

 

(5.1

)

 

–

 

 

(84.4

)

Other adjustments(1)

 

6.1

 

 

7.6

 

 

8.0

 

 

20.5

 

Provision (benefit) for income taxes

 

0.6

 

 

(1.2

)

 

(8.7

)

 

(20.5

)

Net income attributable to non-controlling interests

 

(0.2

)

 

(0.3

)

 

–

 

 

(1.4

)

Preferred stock dividends

 

–

 

 

(4.6

)

 

(4.7

)

 

(9.3

)

Net operating income, excluding reportable catastrophes

$

183.6

 

$

163.7

 

$

365.9

 

$

325.1

 

(1) 

 

Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
(4)   

Assurant uses net operating income, excluding reportable catastrophes (defined above), per diluted share (defined above) as another important measure of the company’s stockholder value. The company believes this metric provides investors with a valuable measure of stockholder value because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income from continuing operations per diluted share, defined as net income from continuing operations plus any dilutive preferred stock dividends less net income from non-controlling interests divided by the weighted average number of diluted shares outstanding.

 
(UNAUDITED) 2Q 2Q 6 Months 6 Months 12 Months

2021

2020

2021

2020

2020
GAAP net income from continuing operations per diluted share(1)

$

3.01

 

$

2.59

 

$

5.41

 

$

4.90

 

$

8.22

 

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

(0.17

)

 

(0.46

)

 

(0.18

)

 

0.90

 

 

0.15

 

Reportable catastrophes

 

0.01

 

 

0.20

 

 

0.72

 

 

0.46

 

 

2.75

 

COVID-19 direct and incremental expenses

 

0.04

 

 

0.30

 

 

0.09

 

 

0.35

 

 

0.42

 

CARES Act tax benefit (after-tax)

 

–

 

 

(0.08

)

 

–

 

 

(1.33

)

 

(1.34

)

Other adjustments(2)

 

0.10

 

 

0.13

 

 

0.12

 

 

0.32

 

 

0.30

 

Benefit for income taxes

 

(0.00

)

 

(0.02

)

 

(0.14

)

 

(0.33

)

 

(0.62

)

Net operating income, excluding reportable catastrophes, per diluted share(1)

$

2.99

 

$

2.66

 

$

6.02

 

$

5.27

 

$

9.88

 

(1) 

 

Information on the share counts used in the per share calculations are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

(2) 

 

Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
(5)   

Assurant uses Adjusted EBITDA, excluding reportable catastrophes, as an important measure of the company’s performance. Assurant defines Adjusted EBITDA, excluding reportable catastrophes, as net operating income, excluding reportable catastrophes (defined above), excluding interest expense, provision (benefit) for income taxes, depreciation expense and amortization of purchased intangible assets. Amortization of purchased intangible assets is excluded from this non-GAAP measure of performance because the company believes it (i) enhances management’s and investors’ ability to analyze the ongoing operations of its businesses and (ii) facilitates comparisons of its operating performance over multiple periods, as the amortization expense associated with purchased intangible assets may fluctuate from period to period based on the timing, size, nature and number of acquisitions. Although the company excludes amortization of purchased intangible assets from Adjusted EBITDA, revenue generated from such intangible assets is included within the revenue in determining Adjusted EBITDA. The company believes Adjusted EBITDA provides investors with a valuable measure of the company’s performance, including underlying profitability and ongoing operations, and reflects its ongoing shift to more service-oriented, fee-based businesses. In addition, it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income from continuing operations.

 
(UNAUDITED) 2Q 2Q 6 Months 6 Months
($ in millions)

2021

2020

2021

2020
GAAP net income from continuing operations

$

184.7

 

$

164.7

 

$

333.2

 

$

313.3

 

Less:
Interest expense

 

28.8

 

 

26.7

 

 

57.2

 

 

52.2

 

Provision (benefit) for income taxes

 

51.9

 

 

44.6

 

 

96.5

 

 

(3.9

)

Depreciation expense

 

17.5

 

 

14.3

 

 

34.3

 

 

26.7

 

Amortization of purchased intangible assets

 

17.3

 

 

12.3

 

 

34.3

 

 

23.5

 

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

(10.3

)

 

(28.9

)

 

(11.2

)

 

56.1

 

Reportable catastrophes

 

0.5

 

 

12.6

 

 

44.1

 

 

28.9

 

COVID-19 direct and incremental expenses

 

2.2

 

 

17.5

 

 

5.2

 

 

20.5

 

Other adjustments(1)

 

5.2

 

 

6.7

 

 

6.2

 

 

18.6

 

Net income attributable to non-controlling interests

 

(0.2

)

 

(0.3

)

 

–

 

 

(1.7

)

Adjusted EBITDA, excluding reportable catastrophes

$

297.6

 

$

270.2

 

$

599.8

 

$

534.2

 

 
(UNAUDITED)

2Q 2021

2Q 2020
($ in millions) Global
Lifestyle		 Global
Housing		 Corporate
and Other		 Global
Lifestyle		 Global
Housing		 Corporate
and Other
GAAP net income from continuing operations

$

123.8

$

93.7

$

(32.8

)

$

121.8

 

$

85.4

$

(42.5

)

Less:
Interest expense

 

–

 

–

 

28.8

 

 

–

 

 

–

 

26.7

 

Provision (benefit) for income taxes

 

37.8

 

25.8

 

(11.7

)

 

36.5

 

 

22.2

 

(14.1

)

Depreciation expense

 

9.2

 

6.4

 

1.9

 

 

7.2

 

 

6.0

 

1.1

 

Amortization of purchased intangible assets

 

15.2

 

2.1

 

–

 

 

9.9

 

 

2.4

 

–

 

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

–

 

–

 

(10.3

)

 

–

 

 

–

 

(28.9

)

Reportable catastrophes

 

–

 

0.5

 

–

 

 

(0.2

)

 

12.8

 

–

 

COVID-19 direct and incremental expenses

 

–

 

–

 

2.2

 

 

–

 

 

–

 

17.5

 

Other adjustments(1)

 

–

 

–

 

5.2

 

 

–

 

 

–

 

6.7

 

Net income attributable to non-controlling interests

 

–

 

–

 

(0.2

)

 

–

 

 

–

 

(0.3

)

Adjusted EBITDA, excluding reportable catastrophes

$

186.0

$

128.5

$

(16.9

)

$

175.2

 

$

128.8

$

(33.8

)

 
 
(UNAUDITED)

6 Months 2021

6 Months 2020
($ in millions) Global
Lifestyle		 Global
Housing		 Corporate
and Other		 Global
Lifestyle		 Global
Housing		 Corporate
and Other
GAAP net income from continuing operations

$

252.9

$

161.1

$

(80.8

)

$

242.7

 

$

159.6

$

(89.0

)

Less:
Interest expense

 

–

 

–

 

57.2

 

 

–

 

 

–

 

52.2

 

Provision (benefit) for income taxes

 

78.0

 

43.2

 

(24.7

)

 

74.7

 

 

41.5

 

(120.1

)

Depreciation expense

 

18.2

 

12.8

 

3.3

 

 

13.1

 

 

11.3

 

2.3

 

Amortization of purchased intangible assets

 

29.9

 

4.4

 

–

 

 

18.7

 

 

4.8

 

–

 

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

–

 

–

 

(11.2

)

 

–

 

 

–

 

56.1

 

Reportable catastrophes

 

–

 

44.1

 

–

 

 

–

 

 

28.9

 

–

 

COVID-19 direct and incremental expenses

 

–

 

–

 

5.2

 

 

–

 

 

–

 

20.5

 

Other adjustments(1)

 

–

 

–

 

6.2

 

 

–

 

 

–

 

18.6

 

Net income attributable to non-controlling interests

 

–

 

–

 

–

 

 

–

 

 

–

 

(1.7

)

Adjusted EBITDA, excluding reportable catastrophes

$

379.0

$

265.6

$

(44.8

)

$

349.2

 

$

246.1

$

(61.1

)

(1) 

 

Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx
(6)   

The company outlook for (i) net operating income, excluding reportable catastrophes, per diluted share, (ii) net operating income, excluding reportable catastrophes, (iii) net operating income, excluding reportable catastrophes, for Global Lifestyle and Global Housing, (iv) Corporate and Other net operating loss, (v) Adjusted EBITDA, excluding reportable catastrophes, and (vi) Adjusted EBITDA, excluding reportable catastrophes, for Global Lifestyle, each constitute forward-looking information and the company believes that it cannot reconcile such forward-looking information to the most comparable GAAP measure without unreasonable efforts. Many of the GAAP components cannot be reliably quantified due to the combination of variability and volatility of such components and may, depending on the size of the components, have a significant impact on the reconciliation. The company is able to quantify a full-year estimate of interest expense and amortization of purchased intangible assets (pre-tax), which are expected to be approximately $90 million and $65 million, respectively, and a full year of preferred stock dividends for 2021, which will be $5 million. The interest expense estimate assumes no additional debt is incurred or extinguished in the forecast period and excludes after-tax interest expenses included in debt extinguishment and other related costs.

 
(7)   

Segment net operating income of the Global Lifestyle and Global Housing operating segments is equal to GAAP segment net income.

 
(8)   

Assurant uses Corporate and Other net operating loss as an important measure of the Corporate and Other segment’s performance. Corporate and Other net operating loss equals GAAP Corporate and Other segment net loss from continuing operations, excluding interest expense, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the CARES Act tax benefit, net income (loss) attributable to non-controlling interests, as well as other highly variable or unusual items other than reportable catastrophes. It also excludes restructuring costs related to strategic exit activities as these are highly unusual, transformative actions associated with realigning resources to the company’s business strategies, outside of normal periodic restructuring and cost management activities. The company believes Corporate and Other net operating loss provides investors with a valuable measure of the performance of the company’s Corporate and Other segment because it excludes highly variable items that do not represent the ongoing results of such segment. The comparable GAAP measure is Corporate and Other segment net loss from continuing operations.

 
(UNAUDITED) 2Q 2Q 6 Months 6 Months
($ in millions)

2021

2020

2021

2020
GAAP Corporate and Other segment net loss from continuing operations

$

(32.8

)

$

(42.5

)

$

(80.8

)

$

(89.0

)

Adjustments, pre-tax:
Net realized (gains) losses on investments

 

(10.3

)

 

(28.9

)

 

(11.2

)

 

56.1

 

COVID-19 direct and incremental expenses

 

2.2

 

 

18.9

 

 

5.2

 

 

21.9

 

CARES Act tax benefit (after-tax)

 

–

 

 

(5.1

)

 

–

 

 

(84.4

)

Interest expense

 

28.8

 

 

25.3

 

 

57.2

 

 

50.8

 

Other adjustments(1)

 

6.1

 

 

7.6

 

 

8.0

 

 

20.5

 

Benefit for income taxes

 

(5.3

)

 

(3.8

)

 

(11.5

)

 

(25.1

)

Net income attributable to non-controlling interests

 

(0.2

)

 

(0.3

)

 

–

 

 

(1.4

)

Corporate and Other net operating loss

$

(11.5

)

$

(28.8

)

$

(33.1

)

$

(50.6

)

(1)   

Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx

Assurant, Inc.

Consolidated Statement of Operations (unaudited)

Three Months and Six Months Ended June 30, 2021 and 2020
 
2Q 6 Months

2021

2020

2021

2020
($ in millions except number of shares and per share amounts)
Revenues
Net earned premiums

$

2,150.6

 

$

2,021.3

 

$

4,256.2

 

$

4,086.8

 

Fees and other income

 

298.5

 

 

236.4

 

 

548.4

 

 

620.0

 

Net investment income

 

82.9

 

 

65.4

 

 

159.2

 

 

149.0

 

Net realized gains (losses) on investments

 

10.3

 

 

28.9

 

 

11.1

 

 

(55.1

)

Total revenues

 

2,542.3

 

 

2,352.0

 

 

4,974.9

 

 

4,800.7

 

Benefits, losses and expenses
Policyholder benefits

 

538.3

 

 

523.6

 

 

1,067.0

 

 

1,058.8

 

Selling, underwriting, general and administrative expenses

 

1,738.6

 

 

1,592.4

 

 

3,421.0

 

 

3,380.3

 

Interest expense

 

28.8

 

 

26.7

 

 

57.2

 

 

52.2

 

Total benefits, losses and expenses

 

2,305.7

 

 

2,142.7

 

 

4,545.2

 

 

4,491.3

 

Income from continuing operations before provision (benefit) for income taxes

 

236.6

 

 

209.3

 

 

429.7

 

 

309.4

 

Provision (benefit) for income taxes

 

51.9

 

 

44.6

 

 

96.5

 

 

(3.9

)

Net income from continuing operations

 

184.7

 

 

164.7

 

 

333.2

 

 

313.3

 

Net income from discontinued operations

 

33.2

 

 

13.7

 

 

33.2

 

 

20.9

 

Net income

 

203.6

 

 

178.4

 

 

366.4

 

 

334.2

 

Less: Net income attributable to non-controlling interests

 

(0.2

)

 

(0.3

)

 

–

 

 

(1.4

)

Net income attributable to stockholders

 

203.4

 

 

178.1

 

 

366.4

 

 

332.8

 

Less: Preferred stock dividends

 

–

 

 

(4.6

)

 

(4.7

)

 

(9.3

)

Net income attributable to common stockholders

$

203.4

 

$

173.5

 

$

361.7

 

$

323.5

 

 
 
Net income from continuing operations per share:
Basic

$

3.03

 

$

2.65

 

$

5.47

 

$

5.00

 

Diluted

$

3.01

 

$

2.59

 

$

5.41

 

$

4.90

 

 
Common stock dividends per share

$

0.66

 

$

0.63

 

$

1.32

 

$

1.26

 

 
 
Share data:
Basic weighted average shares outstanding

 

60,990,609

 

 

60,363,577

 

 

60,096,711

 

 

60,483,244

 

 
Diluted weighted average shares outstanding

 

61,322,556

 

 

63,347,189

 

 

61,554,002

 

 

63,473,312

 

Assurant, Inc.

Consolidated Condensed Balance Sheets (unaudited)

At June 30, 2021 and December 31, 2020

 
June 30, December 31,

2021

2020
($ in millions)
Assets
Investments and cash and cash equivalents

$

10,640.0

$

10,430.4

Reinsurance recoverables

 

6,708.8

 

6,605.4

Deferred acquisition costs

 

8,136.6

 

7,388.0

Goodwill

 

2,588.7

 

2,589.3

Value of business acquired

 

841.3

 

1,152.2

Assets held in separate accounts

 

11.6

 

11.5

Other assets

 

3,419.7

 

3,254.4

Assets held for sale

 

13,648.1

 

13,218.7

Total assets

$

45,994.8

$

44,649.9

 
Liabilities
Policyholder benefits and claims payable

$

2,940.8

$

2,968.8

Unearned premiums

 

17,948.0

 

17,293.1

Debt

 

2,550.5

 

2,252.9

Liabilities related to separate accounts

 

11.6

 

11.5

Accounts payable and other liabilities

 

4,150.6

 

4,057.5

Liabilities held for sale

 

12,484.9

 

12,111.3

Total liabilities

 

40,086.4

 

38,695.1

 
Stockholders’ equity
Equity, excluding accumulated other comprehensive income

 

5,304.4

 

5,241.6

Accumulated other comprehensive income

 

604.0

 

709.8

Total Assurant, Inc. stockholders’ equity

 

5,908.4

 

5,951.4

Non-controlling interest

 

–

 

3.4

Total equity

 

5,908.4

 

5,954.8

Total liabilities and equity

$

45,994.8

$

44,649.9

 

Media Contact:

Linda Recupero

Senior Vice President, Enterprise Communication

Phone: 201.519.9773

[email protected]

Investor Relations Contacts:

Suzanne Shepherd

Senior Vice President, Investor Relations and Sustainability

Phone: 201.788.4324

[email protected]

Sean Moshier

Assistant Vice President, Investor Relations

Phone: 914.204.2253

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Professional Services Other Professional Services Automotive Manufacturing Technology Manufacturing Insurance Mobile/Wireless

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